Settle IRS Debt, Resolution of IRS Tax Probems, Installment Agreement, Tax Hardship Cases
Settlement of the IRS Collection Accounts
You may be able to settle your tax debt for considerably less than the amount of the taxes owed. Before the IRS will consider settling back taxes, you must have filed all past due tax returns and in addition, must remain current with ongoing payments. (Need to file past due tax returns? )
The simplest approach is simply to pay the taxes due. However, this can be a confusing and frustrating experience because it can be difficult to obtain accurate information about the total of taxes penalties and interest. In addition, most people cannot pay their taxes all at once. We can assist with obtaining IRS agreement to one of several tax payment programs.
One of these programs is an Offer in Compromise. If a taxpayer can pay a portion of the taxes owed and can demonstrate an inability to pay a greater sum, it may be possible to negotiate a settlement for less than the full amount of the back taxes. The IRS will look to your current and future financial situation in determining whether or not the Offer in Compromise will be accepted.
Hardship cases. Sometimes it is just not possible for a taxpayer to pay the taxes because of dire financial circumstances. When it can be demonstrated to the IRS that there is not a reasonable possibility of collecting back taxes nor is there a reasonable possibility that you can pay the taxes from current income. If so, the IRS will place your account on a Currently Not Collectible (CNC) status. Collection activity will stop. Keep in mind that the IRS is reluctant to grant hardship status and will engage in in depth discussions and require proof of all income and expenses.
In all of the above described circumstances, you are entitled to representation. In many cases, taxpayers find that hiring a tax attorney is a better option than paying others with lesser training or credentials. People are often suprised to learn that a tax attorney can be retained for about the same cost as non-attorney companies.