Offers in Compromise
Despite the common wisdom out there, you can settle for less than what you may owe the IRS! This is the general idea behind what's called an "Offer in Compromise". Many people - every year - are eligible to negotiate with the IRS to pay a smaller amount than what the IRS may say they owe.
If you are successful in qualifying for an Offer in Compromise (OIC), some or all of the tax, penalties, and interest you owe could be negotiated down. The best part is that all federal tax liens will be released if successful. Sometimes you qualify for an Offer in Compromise because you are an innocent spouse, other times, it's because you are simply not able to pay your tax bill. Whatever the situation, know that $20,000 owed can possibly end up only being $5,000.
Some taxpayers handle their own Offer in Compromise, and unfortunately end up worse off than when they started. Why? Due to lack of experience dealing with the IRS, some taxpayers don’t negotiate right and offer too much. Others make the big mistake of saying the wrong thing, or being deceptive which could result in facing criminal prosecution for tax fraud. This is a very risky proposition. No matter who you are, or what your background, always assume this: the IRS knows more about taxation and what to look for in a cheater or tax evader than you do.
Successfully Handling an Offer in Compromise
We can handle the entire case for you, limit the amount of your offer, and keep you on the positive side of the law. With our office, you'll never be required to meet with the IRS. The negotiations are based on the proper valuation of your assets, typical living expenses and monthly income.
People often qualify for an Offer in Compromise (OIC) when:
- Their assessed tax is incorrect.
- The IRS does not think the full amount of tax owed could ever be paid.
- The taxpayer has a serious economic hardship - an expensive, life threatening illness for example.
Many people find it impossible to ever pay off the IRS. Tax penalties and interest can make it very hard. Sometimes you need to take proactive action so you can get your life back. Most of the time, people who are dealing with these types of tax issues cannot get a home mortgage or car loan. The IRS can sometimes make decisions based on incomplete facts. You owe it to yourself to partner with a tax specialist that understands the IRS processes.
At the law office of Steven N. Klitzner, we will negotiate an offer in compromise with the IRS on your behalf. Dealing with tax problems can be one of the most stressful times of anyone's life; don't handle your own Offer in Compromise - hire a tax attorney who specializes in tax law and helps people get rid of their IRS problems for a living.