Tax Resolution

Alleviating the stress of back-taxes

Owing taxes is taxing. But it doesn’t have to be. As CPAs, we can help you negotiate with the IRS to pay off your back taxes and get you back in good standing. Our goal is to help you satisfy your back taxes as quickly and painlessly as possible. We’ve helped clients with things like penalty abatements, tax lien removals, establishing installment payment plans, and negotiating offers in compromise. Our expertise isn’t limited to just the IRS. If you have state tax issues, we can help with that too.

Back taxes can be daunting and crippling for any business or individual. Government agencies, like the IRS, have the power to garnish your wages, place liens on your property, and levy your bank and retirement accounts.

There are, however, many tools at our disposal to either settle or reduce your tax debt!

Installment Agreement
Offer In Compromise (OIC)
Currently Not Collectible Status (CNC)
Penalty abatements
Tax Return Amendments

Before beginning the tax resolution process, it is important that you:

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File all delinquent returns: the IRS requires that taxpayers be compliant with all tax laws if it is going to agree to terms with a taxpayer who owes. This includes, but is not limited to: filing all tax returns.

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Be current with all tax payments outside of the agreed-upon period: that means proper withholding on your paychecks and being

up-to-date on your estimated tax payments (for the taxpayers who are self-employed).

If you meet both of the above criteria, you have a good chance at resolving your back taxes.

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Installment Agreement

Most individuals try to arrange matters so that they won't have to pay any additional taxes when they file their income tax returns. However, things don't always work out as planned and it's possible to find not only that there is tax to pay at filing time, but also that there is insufficient cash to pay. You do not have to pay the tax liability in one lump sum. The IRS has made it possible for taxpayers to pay delinquent taxes in monthly installments. Of course, fees and interest must be paid but, most often, the alternative of not taking a proactive approach is far less desirable.

Applications for installment agreements are easy to make and are generally granted. They are guaranteed to be granted for individuals (but not businesses) if the tax liability is $10,000 or less, the taxpayer has been compliant for the past five tax years, and the taxpayer agrees to pay the entire liability within three years. Drawbacks to setting up an installment agreement include the continued accrual of interest and penalties on the tax owed. Also, the IRS may proceed to issue a notice of federal tax lien or Institute levy action against a taxpayer who defaults on the agreement. To apply for an installment agreement, complete IRS Form 9465, Installment Agreement Request, and attach it to your tax return. You may file electronically.

Often, taxpayers seek to pay only part of what they owe to the IRS. If the IRS accepts, this is known as an offer in compromise. Many taxpayers mistakenly believe that an offer in compromise is a right. The IRS has sole discretion whether or not to approve an offer in compromise and the IRS approves very few

The compromise that the IRS is willing to make takes the form of installment payments to pay off the tax liability over time. This is particularly useful because it prevents the IRS from liquidating major assets, such as a home or a retirement fund, which can be devastating, both financially and emotionally, to the taxpayer. Terms can be rather generous. But if a taxpayer can't swing an installment deal with the IRS, his or her financial situation may be such that an "offer in compromise" may prove to be an even better alternative. An offer in compromise actually lowers the total amount of liability outstanding, usually in return for a commitment to pay this reduced amount over a period of years.

If you decide to make an offer through the IRS's Offers in Compromise program and the IRS accepts, you end up paying the lesser amount in full satisfaction of your tax liability. The IRS cannot collect the additional tax from you. It may accept an offer only if there is doubt whether the tax liability exists or doubt whether the tax can be collected.

Offer in Compromise

Currently not Collectible Status

When a taxpayer has enough non-liquid assets to settle their debt but is currently not in a financial position make tax payments, the IRS may place them in CNC status. CNC status will usually remain until the debt its Collection Statute Expiration Date (CSED) or the taxpayer's income exceeds a certain prescribed limit.

We are here to provide the best tax and accounting services for our clients, giving them long-term strategies for financial success.

949-587-9890

Tax Resolution

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Installment Agreement

Offer in Compromise

Currently not Collectible Status

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