Offers in Compromise
Let Our Cerritos Tax Attorney Help Solve Your Tax Debt
If you are struggling under the weight of tax debt, you may be feeling
overwhelmed and helpless. Fortunately, the IRS offers certain qualifying
individuals the option to settle their debt for a lesser amount than owed
through a process called an offer in compromise. At RJB Law Offices, our
Cerritos tax lawyers have more than a decade’s worth of legal experience
and can help you pursue an efficient and effective solution for your tax
concerns. We can help you find out if you are eligible for an offer in
compromise and guide you towards the most favorable resolution possible
for your tax debt.
Schedule your free consultation online today to find out if you qualify.
Who Is Eligible for an Offer in Compromise?
An offer in compromise is a legitimate option for those who are unable
to pay their full tax liability or if doing so would create an undue financial
hardship. Debtors may choose either a lump sum payment or periodic payment
option. The first option requires you to pay 20 percent of your total
offer amount up front and pay the remaining balance in five or fewer payments,
while the second involves submitting the initial payment with your application
and paying the rest in consistent monthly installments while your offer
is being considered by the IRS.
Individuals are required to explore all other payment options prior to
submitting an offer in compromise. To determine eligibility, the IRS will
examine numerous factors such as your ability to pay, income, current
expenses, and asset equity, along with numerous other requirements.
Individuals who do not qualify for offers in compromise include:
- Those who are not current with all filing and payment requirements
- Those who are in an open bankruptcy proceeding
Most offers in compromise are approved when the offered amount is equal
to the greatest amount that the IRS can expect to recover within a reasonable
period of time. While an offer in compromise can potentially help you
settle your tax debt for far less than the full amount owed, it is important
to remember that there are numerous conditions that must be considered
while your offer is being evaluated.
The following may occur while your offer in compromise is being considered:
- A Notice of Federal Tax Lien may be filed
- Nonrefundable payments and fees may be applied to your tax liability
- Other collection activities may be suspended
- The legal assessment and collection period may be extended
- Any offers are automatically accepted if the IRS does not decide upon them
within two years
Overcome Your Tax Struggles Today
As much as we would like them to, tax issues do not go away if they are
ignored. In fact, the longer you wait to handle your tax issues, the more
severe your situation will become. Our Cerritos tax attorneys are equipped
with the knowledge and skills to help you tackle your debt head-on and
get back on your feet as smoothly as possible. We understand the struggles
you face, and we are prepared to do everything possible to get you through
this difficult time.
Call (888) 256-8581 today to discuss your situation with our team of professionals