Owing back taxes to the Internal Revenue Service or the Virginia Department of Taxation can be a constant source of suffocating stress, regardless of what led to you accruing that debt in the first place or what amount you need to pay. However, if you are able to meet certain conditions and follow the proper procedures, you may be able to get some of your tax debt forgiven by paying off the rest of it through an offer in compromise.
Negotiating with the IRS in Richmond for an offer in compromise can be a great way to get your life back on track while also avoiding more burdensome debt repayment options like wage garnishment and asset liquidation. However, actually getting the IRS to agree to such an offer can be far from simple in practice, which is why you should consider seeking the assistance of a seasoned tax resolution lawyer from Whiteford Tax Defense if you want to explore this option for yourself.
In order to be eligible to negotiate with the IRS in Richmond for an offer in compromise, all the following things must be true:
The IRS will only accept an offer in compromise if you can demonstrate that there is a genuine dispute about whether or how much you owe in tax debt, you do not have enough assets and income to pay off the full amount of debt you currently owe, or paying off your full tax debt would impose undue hardship on you or otherwise be inequitable.
If you want to make an offer in compromise with the IRS based on your inability to pay the full amount or based on undue hardship, you must fill out and submit Form 656 as well as Form 433-A (OIC) if you are filing as an individual or Form 433-B (OIC) if you are filing as a business. If your offer would be based on a dispute about your actual tax liability, you would need to file Form 656-L.
If you need to negotiate with the Virginia Department of Taxation in Richmond over a state tax debt, you would need to submit Form OIC I-2 as an individual or Form OIC B-2 as a business for offers of compromise based on liability disputes or to seek relief from tax penalties. If you want to make an offer of compromise based on financial hardship, the appropriate forms would be Form OIC I-3, FIN I-1, OIC-Fee for individuals, and Form OIC B-3, FINB-1, OIC Fee for businesses.
Establishing you have valid grounds to make an offer of compromise can be hard enough on its own, to say nothing of how challenging it can be to make an offer with reasonable terms that federal or state tax authorities will accept. Fortunately, you have help available to you from an experienced legal professional who can help you build the strongest possible case for tax relief based on your unique circumstances and needs.
If you need assistance negotiating with the IRS in Richmond, contacting Whiteford Tax Defense should be among your top priorities. Call today to schedule a confidential consultation.