Sometimes you have a tax debt after the IRS finishes assessing your tax return. You may have known it was coming, but you did not know it would be as large as it turned out to be. It could be more than you can reasonably afford to pay right now. You are willing to pay the IRS, but you cannot pay the amount they are requesting.
What you want to do is make an offer in compromise (OIC). An OIC is an option the IRS will consider if you cannot make the full payment, but can make a lesser payment in full, or if paying the full amount would create a significant financial hardship for you. There are certain restrictions to making an OIC, and you should consult a Richmond offer in compromise lawyer at Whiteford Tax Defense before approaching the IRS. Our tax attorneys are here to help.
An OIC is a type of negotiation with the IRS in which you acknowledge that you owe the debt but are unable to pay the amount owed. The IRS usually accepts offers based on a taxpayer’s ability or inability to pay, and whether the offer represents a sum they could reasonably expect to collect. It is best to make an OIC only after you have explored all your other options for paying your tax debt.
An OIC requires payment of a consideration fee and completion of several additional tax forms. If your offer is rejected, the fee can be applied to your outstanding tax balance.
The IRS website has a Pre-Qualifier Tool to help you decide if you can make an OIC. You should also consult an OIC attorney in Richmond. You may qualify if you:
The IRS may ask for additional proof of your inability to pay, such as proof of income, bank accounts, and any other liquid or nonliquid assets. You should be prepared to pay something, even if your debts exceed your assets.
You can request a Low Income Certification. This waives the application fee and the need to make monthly payments while the offer is considered.
The IRS wants its tax money. They are less interested in litigation or putting people in jail. They are willing to compromise with taxpayers who have difficulty paying, as long as you are willing to be honest with them.
The attorneys at Whiteford Tax Defense are here to help you negotiate with the IRS and ensure you make the kind of offer in compromise that is fair for you and likely to be accepted by them. Most offers and negotiations with the IRS take place via paperwork and mail. You may never speak to the agent handling your case. That is why it is essential that your documents are completed perfectly and without mistakes.
We will review everything before it gets submitted, and make sure you have included the details that the IRS wants to see when they approve an offer in compromise. When you come to our office, you will leave reassured that your offer will be reviewed in a positive light by the IRS. Call today for an appointment.