Tax Negotiation

We specialize in tax negotiation with the IRS. If you owe the IRS taxes and you’re unable to pay the total amount, we can attempt to settle your tax debt for you. We have the experience and know-how to take advantage of various tax debt reduction strategies and have help many clients reduce or even at times eliminate their tax debt.

The following is detailed information about some of the government programs that we can use to reduce or eliminate your back tax debt and what to expect when dealing with an IRS tax debt.

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Installment Plan

If you feel you can afford to make payments to pay off your tax debt, then an installment plan with the IRS may be your best option. However, the IRS may require you to fill out forms or respond to questions over the phone regarding the details of your financial situation. In some cases, they can use this information against you as a way of collecting more money, especially if you have assets or substantial income. So it’s best not to try to negotiate with the IRS alone.

We can negotiate with the IRS and help set up an installment plan that you can afford and that won’t create a tremendous burden on you financially.

Partial Payment Installment Plan (PPIA)

If you feel you can afford to make payments to pay off your tax debt, then an installment plan with the IRS may be your best option. However, the IRS may require you to fill out forms or respond to questions over the phone regarding the details of your financial situation. In some cases, they can use this information against you as a way of collecting more money, especially if you have assets or substantial income. So it’s best not to try to negotiate with the IRS alone.

Of course, negotiating with the IRS for such a payment plan along with a reduction of your tax debt is tricky to say the least. We can help you organize and submit your paperwork and craft your letter so that you have the best chance for a good result.

Offer In Compromise (OIC)

Offer in compromise is also known as the “pennies on the dollar program” which is heavily advertised on television and radio. There are three scenarios under which the IRS accepts OIC requests:

Doubt as to Liability: The amount of tax assessed is incorrect.

Doubt as to Collectability: This is the category most often used. The person filing under this category must demonstrate that he or she will likely never be able to pay the full tax obligation due to financial hardship or some other compelling reason.

Effective Tax Administration: Requests for relief under this category do not dispute the amount of the tax. Rather, the claim is that collecting the tax would create an injustice. Elderly or disabled taxpayers often use this category.

To request an Offer in Compromise, file Form 656: Offer in Compromise and Form 656-A: Income Certification for Offer in Compromise Application Fee and Payment.

Offer In Compromise is the most difficult IRS program to get accepted for. But we have helped many clients obtain a favorable outcome and if you feel that you may qualify, we can help you too.

Currently Non-Collectible Status (NCS)

If you feel that you cannot make payments towards what you owe to the IRS due to financial hardship, you may request that your account be placed on hold due to financial hardship.

You will need to provide detailed financial information and if your request is granted, you will still owe taxes to the IRS but collection attempts would cease while your case is in Non-Collectible status. Your circumstances may be re-evaluated later in the future depending on your situation. Becoming non-compliant or incurring more tax debt are triggers for the IRS re-evaluating and lifting the stay of collections.

Tax Penalty & Fee Abatement

If you feel that you can pay your IRS tax obligation in full or in installments but simply need a break on the penalties and fees, then the Penalty and Fee Abatement program may provide some relief. You may request to have eligible penalties and fees removed by providing a letter outlining a compelling reason for requesting the abatement, hiring a tax professional or filing out IRS Form 843.

If you’d like to try to take advantage of this program, we can help.

Making Use of the Statute of Limitations

In some situations you may be able to wait out your tax debt and have it erased from your record. The statute of limitations on federal tax debt is usually 10 years but calculating your expiration dates can be difficult. The “clock” doesn’t start to run until the IRS has assessed your debt and there is a tolling period if you file bankruptcy or submit for requests for certain IRS settlement programs.

If you are considering utilizing this approach, get in touch with us and we can help you obtain accurate expiration dates and a game plan of what to do in the meantime.