Tax debt is a problem that plagues millions of Americans every year and serves as a source of debilitating stress and guilt. Such feelings are further multiplied by the constant pressure and presence of the IRS. Whether it’s frequent phone calls, delinquent notices or extreme measures such as garnishing wages or seizing personal property, IRS officials will stop at nothing to get debtors to pay up. In such cases, an Offer in Compromise may be a viable solution for the taxpayers that are struggling to pay their bills.
An Offer in Compromise is an agreement between a taxpayer and the IRS under which the IRS agrees to accept less than the full payment for the federal tax liability of a taxpayer. However, an Offer in Compromise is available in only limited circumstances. Before the IRS will accept an Offer in Compromise, you must meet one of three following requirements:
- Doubt as to liability
- Doubt as to collectability
- Effective tax administration
When there is doubt as to the liability, you must show the IRS there’s a legitimate doubt as to whether the assessed tax is correct. The claim doubt as to the collectability requires that you must convince the IRS that there is doubt that you will ever be able to pay the federal tax liability in full. The effective tax administration is when your tax bill is correct and the IRS thinks it can collect it from you, but there’s a special circumstance making an OIC possible, such as having a serious medical condition that requires all your income and assets to pay for your medical needs.
If you are drowning in overwhelming tax liabilities and are continually avoiding calls and letters from the IRS, Prompto Group may be able to help you. Our comprehensive Offer in Compromise process begins with the initial assessment of the case by an attorney and/or a CPA. During the review, you will be asked about your assets, liabilities, income, and expenses in order to determine the best possible solution for the case. If the initial review results in a positive feedback, our attorneys and CPAs will then help you to prepare the necessary documentation for submission before the IRS. The next step is the negotiation with an IRS agent about the monthly amount and the duration of payments the client would be required to make to satisfy the conditions of the Offer in Compromise reached in his or her specific case.
Our diligent and trustworthy attorneys and CPAs are experts in their fields and will be there to speak to the IRS on your behalf, represent your interests, give you sound legal advice, and help to relieve the stress and tension from your particular financial situation. It’s never too late to resolve your tax debt. Contact us at (888) 754-7510 or info@promptogroup.com to set up your free initial consultation and assessment today!