1548 The Greens Way – Ste. 4 Jacksonville Beach FL 32250
The IRS always works to secure any back taxes someone or a business owes to them. The organization realizes that simply seizing funds is not always the correct plan of action. This is why the IRS offers options for those dealing with tax issues to find alternative means of payment.
One of the most common solutions people in St. Augustine use when trying to pay outstanding taxes is an offer in compromise. Not every case can end with an offer in compromise, and that’s why you need a St. Augustine, Florida, offer in compromise attorney who can guide you on whether the solution is right for you.
TaxSmith has plenty of experience working on all aspects of federal taxes. We’ve negotiated with the IRS before and can provide that same assistance to new clients. Tax law is a complicated beast, but our lead attorney, Angie Smith, can work with you to find a solution to your tax issues and help get you back on your feet.
An offer in compromise is one of the methods for paying off your outstanding debts to the IRS. In some cases, the IRS is willing to cut a deal with a debtor to secure a payment, even if the settlement ends up being less than the taxes were worth. The IRS does not make offers in compromise in all cases, so you should speak with a St. Augustine attorney to discuss if this option is on the table for you.
You will likely save money on what you owe if you negotiate an offer in compromise. The IRS determines the payment deduction based on a formula. Your attorney should be able to help you calculate your savings if you qualify.
There are three scenarios where the IRS is likely to accept an offer in compromise. If you fulfill any of the requirements, you can ask your attorney to negotiate an offer in compromise with the IRS.
The first condition is if you believe you do not owe as much as the IRS says you do. This must be a legitimate dispute, and you could show a case of mistaken identity or that you already paid your taxes. If there is reason to believe you don’t owe the full amount, the IRS will likely try to negotiate with you for a smaller settlement.
The IRS will also negotiate with people they deem unable to ever pay back the full amount. You will need your attorney to explain your situation and showcase how it is unfeasible for you to pay back the total amount in a reasonable time. The organization will look to cut a deal that you can pay back immediately.
The final criterion is if you can showcase that the IRS taking all you owe would cause undue hardship on you and your family. You’ll need to explain how paying the total amount wouldn’t be fair to you, and you can settle on a diminished payment.
Offers in compromise are a relatively painless way to clear up tax issues, but as we’ve seen, they aren’t available to everyone. The IRS has a few other tactics it uses to acquire owed taxes, but they are not as simple as an offer in compromise.
In extreme cases, the organization may look to use a bank levy to collect funds. During a bank levy, the IRS will freeze your bank account and extract money from it to make up for what you owe. You will have a brief period where you can negotiate a settlement with the IRS or set up another system of payment.
The IRS may also opt to use wage garnishment to collect taxes. Wage garnishment sees the organization deduct money from your paycheck until you pay any outstanding debts. The deduction works similarly to the way your employer withholds money from your paycheck for taxes throughout the year.
An offer in compromise is exactly what it sounds like – a negotiation between two parties. You should hire a St. Augustine attorney who has experience working with the IRS to get the greatest deal possible and ensure you reach a fair settlement.
A: The IRS charges a $205 fee to file for an offer in compromise. The organization allows low-income households to file for an exemption from the payment. While this payment may seem like an annoying hoop to go through, an offer in compromise will likely save more money than the cost of the application.
A: The IRS is willing to negotiate for a smaller settlement than you owe in a few scenarios. You must show you don’t owe as much as the IRS says, that you have little ability to pay back your entire debt, or that paying the entire debt is unfair to you financially. If you fall into these categories, the IRS will likely seek a compromise.
A: The IRS can seek to collect owed taxes from individuals by using a bank levy. The organization takes control of your bank account, freezes it, and takes any money in it to pay toward your debt. If you still owe after the levy, the IRS may do it again to a different account.
A: It’s entirely possible to go through an offer in compromise process by yourself, but you’ll likely want professional help. A St. Augustine lawyer will know how to negotiate with the IRS and can tell you if a deal they offer is worth taking.
Paying off back taxes can be like removing a weight from around your neck. With an offer in compromise, you can settle with the IRS for less than you owe and clear your debt to get back to your life. At TaxSmith, we have experience working on offers in compromise cases and can help with yours. Contact us today for a consultation and to get started with your tax issues.
Please fill out the Contact Request Form and a Tax Attorney/Paralegal will call you
to discuss legal representation or to schedule your free initial consultation