Owe unpaid back taxes, penalties and interest? Wondering what type of help is available?
If you cannot pay your entire tax debt, then a negotiated tax settlement, OIC – offer in compromise would be a great option for you. This allows you to resolve your tax matter and pay less than the entire amount owed. OIC gives you a fresh start, it’s a viable alternative when you are unable to pay your complete tax liability because of your financial hardship.
Internal Revenue Service considers the taxpayer’s unique facts and circumstances by assessing the following factors:
- Equity in assets (real estate, IRAs, 401k, etc.)
- Living expenses
- Household Income
- Ability to pay
- Disposable income, or lack of
RCP – reasonable collection potential, if the calculated amount offered by the taxpayer is the most the IRS can expect to collect from him or her within a specific time period, the Internal Revenue Service usually accepts the offer in compromise in lieu of full payment. The taxpayer should explore and assess all the other settlement options before submitting an offer in compromise. This settling option is not meant for everyone.
You can represent yourself, or hire a tax professional to represent you. Beware of all the advertisers, only IRS approved representatives can help you such as EAs enrolled agents, CPAs and lawyers who specialize in tax representation.
Our firm is a tax representation firm, founded by Mike Habib, and IRS licensed enrolled agent, he represent his clients before all administrative levels of the IRS and various state tax agencies. He is federally licensed and represents taxpayers in all 50 states. Call him at 877-788-2937 to start your case today.
Is getting help for Offer in compromise important?
An offer in compromise is the best option to settle your tax debt for less than you owe. Once an offer is negotiated and accepted, all liens are released and withdrawn. Tax problems can cause a lot of stress on family, and getting this heavy load off your back is a huge relief. The IRS enforces collection actions on taxpayers such as wage garnishments, bank levies and tax liens. Settling your tax debt and avoiding these stressful and stiff actions, is huge sigh of relief.
If you owe taxes and simply cannot pay it, you should consider an OIC settlement. However, it is imperative for you to know that it is quite tough to get an approval for an offer in compromise. So it becomes crucial for you to look out for an experienced and qualified tax professional that has the experience and ability to assess your current financial situation and whether you are a likely candidate for getting your OIC approved.
How can a tax professional help with an OIC – offer in compromise?
For some taxpayers who actually qualify, an offer in compromise is a blessing in disguise. It is because an offer gives such taxpayers, a second chance to have the financial freedom and relieves him or her from a very heavy tax burden.
An experienced tax professional would assess whether the taxpayer qualifies for an offer in compromise or not and then implement the best action plan for tax relief. However if the taxpayer is not a good candidate for an offer in compromise, there are many other options to resolve a tax matter and avoid enforcement actions such as tax levies and liens.
We assist our clients in effectively settling their tax problems through various settlement options. Call us today at 877-788-2937.
About Mike Habib, EA NTPI Fellow®:
Mike Habib is an IRS licensed Enrolled Agent who owns and operates a specialized tax services boutique firm serving clients in various metro areas such as Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando.