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.
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 debt settlement 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) 235-5374 today to discuss your situation with our team of professionals in detail.
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