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Are you stopped at the tax relief gate?

Are you stopped at the tax relief gate?

Tax debt burden

Dealing with IRS tax debt can be stressful. Especially, when you don’t know or fully understand your rights.  If you owe the IRS you have probably received many collection notices including a notice of intent to levy or seize. What you may not know is that there are ways to stop these actions while you work out an agreement with the IRS. In some cases you may be able to get out of the debt completely if you are an innocent spouse.

 Strict deadlines for tax relief

There are very strict deadlines for tax relief. Don’t procrastinate. You may lose a valuable tax relief option.  Don’t fall into the trap of believing that you can appeal to the IRS or judge’s reasonableness.  Tax law is not a law of equity it is based on rules that must be followed.  For example, if you need to contest your tax liability and you receive a 90 day letter from the IRS if you file on the 91st day you get no relief. Also, the days are calculated in a very specific way. If you calculated wrong then that’s just too bad. This is the reality that some people have to deal with when a good tax relief option has expired.

Offer on Compromise

An offer in compromise is a good solution for many with tax debt. But, be careful. If someone is offering a “pennies on the dollar” approach you may end up a victim of a scam. Why? Because very few people will qualify for such an offer. Even so, an offer in compromise is a good way to settle your tax debt.  Remember, the offer in compromise balances a taxpayer’s liability owed to the IRS against their income, expenses, assets, and equity.  There is no hard and fast rule but generally the higher a taxpayer’s liability and the lower the taxpayer’s ability to pay (through income and liquidation) the better a candidate the taxpayer is for an offer in compromise.

Explore all of your options

There is more than one way to negotiate your tax debt. The key is finding the best way for your situation. Something that worked for your neighbor may not work for you.  Your overall financial picture needs to be considered in attempting to negotiate with the IRS.  Remember, the IRS agent will be very courteous but they are not on your side. The IRS agent will always try to get you to pay the most amount of money.  The IRS will calculate your debt based on what they believe you should pay.  This number may be dramatically different from what you can actually pay.  But, it is up to you to get the best payment possible. Do you want to spend hours researching tax law? Just to give up a key piece of information to the seemingly nice IRS agent. Or do you want someone to represent you and get the best deal for you?

Tax attorney - Miami and West Palm Beach Florida. I graduated from the #2 tax school in the US. My over twelve years of entrepreneurial experience will help you make the right decisions for your business. Do you have an IRS tax problem? Let's talk today. Your tax options may change tomorrow.

My blog posts are NOT LEGAL ADVICE. They are for informational purposes only. Actual legal advice can only be provided after you have signed an engagement letter. This information does not create an attorney client relationship. Without attorney client privilege you could divulge information that can hurt your legal rights in the future. I can answer your tax questions in person in Miami and West Palm Beach Florida.