Many taxpayers are unaware of the alternatives available to them to help with tax problems. A taxpayer may be eligible to pursue an alternative settlement plan called an “Offer In Compromise”. This plan allows a taxpayer to offer a compromise to the IRS to resolve outstanding tax obligations. If you are unfamiliar with this process, it is strongly recommended you retain a tax professional, such as an IRS lawyer. A experienced IRS tax lawyer can ensure you do not miss any chance for acceptance of your offer. In addition, an income tax attorney or tax lawyer can provide many other services to taxpayers in trouble.
What is an “Offer In Compromise”?
An Offer In Compromise is an agreement between the taxpayer and the government. This is one option that makes it possible for a struggling taxpayer to pay back tax debts. However, the process of an Offer In Compromise can be quite complicated. It is a wise decision to hire an IRS lawyer to help you. Without the assistance of a tax relief attorney or tax lawyer, you may miss your only opportunity to possibly settle your tax liability for a significantly reduced amount.
There are specific circumstances in which a tax debt can be legally compromised. These situations would include:
- Doubt as to liability – existing doubt as to validity of the debt
- Doubt as to collectivity – doubt you could ever repay the debt in full
- Effective tax administration – the tax money owed is correct and can be collected, but extenuating circumstances exist that may allow the IRS to consider a compromise
Your IRS lawyer is experienced in these situations and can assist you in filing the correct paperwork proving financial hardship. An income tax attorney will assess your financial situation and the terms of “Offer In Compromise” to determine your eligibility.
One way to successfully resolve your tax debts
The goal of an Offer In Compromise is to settle outstanding tax debt and reduce fines and penalties. This agreement is designed to be in the best interest of the government and the taxpayer. It is only with the assistance of an IRS lawyer that you will be able to successfully negotiate a fair and workable agreement allowing you to repay your debt and recover financially. A tax relief attorney will make certain you have filed all necessary paperwork required for an Offer In Compromise. This ensures the IRS does not reject your request based on filing or paperwork violations.
The forms and paperwork
Your IRS tax lawyer will help you complete the Offer in Compromise Form 656. This form, along with Form 433-A and 433-B, completes the Offer In Compromise package. These forms assist taxpayers and their IRS lawyer to correctly prepare an Offer In Compromise. Accurate preparation of these forms helps reduce the margin for error and has made the entire process much easier. Your income tax attorney is well versed in the completion of these forms and will assume the responsibility to file them in a timely and accurate manner.
If you are experiencing apprehension or reservations about hiring an IRS lawyer, consider what can happen if you leave your situation to circumstance – escalating fines and penalties, seizure of assets, loss of business, etc. A tax lawyer will prove to be your greatest asset.