Liability Settlements

 
  Forgiveness of Penalties
 
 
  Audit Reconsiderations

 
  Installment Plans

 
  File Back Taxes

 
 

 

TAX SETTLEMENT OPTIONS
Resolving Serious Tax Problems...

Tax problems may keep you awake at night or creep into our mind when you have a quite moment. Losing sleep, suffering, naggin, or worry won't alleviate the stress. Only having a plan to solve your problem and acting on it will end your anxiety. Real peace of mind comes with getting the problem under control.

 

Sadly, most troubled taxpayers have wrestled unsuccessfully with their tax problems for a long time only to realize they aren't able to do it by themselves.

Taxpayers who try dealing with the IRS agents on their own will often quit in frustration. It starts with the hours on hold, followed by the hundreds of intrusive questions, and finally ends with IRS demands that are nearly impossible to live with. Later, when the plan fails, you have to start all over again, usually with a much larger balance due.

You never need to talk to the IRS. Let an expert do it for you.

Let the experts at Tax Ally negotiate the proper settlement for you. Each situation is unique. Don't be fooled by other firms offering "one solution fits all". We'll work to find the right solution for you, which might include:

  Offer in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer's tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.

In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer's ability to pay and includes the value that can be realized from the taxpayer's assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

Taxpayers should beware of promoters' claims that tax debts can be settled through the offer in compromise program for "pennies on the dollar." Each individual case is unique and there is not a "one fits all" solution.

  Penalty Abatement
Penalty abatement is forgiveness of penalties associated with tax debt that have been added over the course of the debt. Sometimes the IRS will agree to remove such penalties when a tax payer has shown a desire to resolve the debt and has sound reasoning for the request.

 
   
   
 

  Audit Reconsideration
Audit reconsideration is an Internal Revenue Service procedure designed to help you when you disagree with the results of:

  • An Assessment IRS made because of an audit of your tax return, or
  • A return IRS created for you because you did not file a tax return, as authorized by Internal Revenue Code 6020(b).

This process allows the IRS to reconsider a taxpayer’s information informally. We resolve many cases at this level.

  Innocent Spouse
If you sign a joint return, the IRS may be able to collect any tax relating to that return from you even if your spouse was the one who reported incorrectly. There are three ways to get out of paying your spouse's tax. The one described on this page is the innocent spouse rule.

You're eligible for relief if you meet the following conditions:

  • You filed a joint return on which there was an understatement of tax due to an erroneous item relating to your spouse.
  • You didn't know, and had no reason to know, about the understatement when you signed the return.
  • Looking at all the facts and circumstances, it would be unfair to make you pay the tax.
  • You apply for relief under this provision within two years after the IRS begins trying to collect the tax from you.

If you meet all these requirements, then you don't have to pay the portion of tax that relates to this erroneous item.

  Installment Plans
Taxpayers owing large amounts of tax may qualify for an installment agreement with the Internal Revenue Service. For those taxpayers who cannot immediately resolve their tax debt, an installment agreement can be a reasonable payment option. Installment agreements allow for the payment of the tax debt in smaller, more manageable amounts.

  File Back Taxes
Taxpayers who haven't filed tax returns for past tax years should file their returns regardless of whether or not full payment can be made. Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions. Continued non-compliance by flagrant or repeat non-filers could result in additional penalties and/or criminal prosecution.

 


LOCAL SUPPORT

Don't rely on remote support and long-distance phone calls. Our specialists are only a phone call away. Meet with an associate at a local office,
face-to-face.

Contact us for a free consultation.

 
 

OTHER SERVICES

We also offer:
  • Audit Representation
  • Statute of Limitations Review

 

Proud members of the
Better Business Bureau.

 

 

 


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