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Using a Los Angeles Tax Attorney to help with an IRS Offer in Compromise

Monday, October 3, 2011

Using a Los Angeles Tax Attorney to help with an IRS Offer in Compromise

Many Americans whether it comes to personal taxes or business taxes may occasionally find themselves slapped with an outstanding tax liability. A Los Angeles Tax Attorney can help you to either eliminate or drastically lower your outstanding liability by use of an IRS Offer in Compromise. Many people do not understand what an IRS Offer in Compromise is regardless of having heard about it several times. It is a complex tax settlement that your Los Angeles Tax Attorney can help you with. Let’s take a further look at what an IRS Offer in Compromise consists of and how your Los Angeles Tax Attorney can help you reduce or expunge your tax liability.

What is an IRS Offer in Compromise?

An IRS Offer in Compromise is a settlement reached between you, your Los Angeles tax attorney and the IRS in where your tax liability is either reduced or in some cases, even waived. Because it is a complex procedure, you will want the assistance of a Los Angeles Tax Attorney to help you establish the best case when applying for an Offer in Compromise. If you succeed in filing for an Offer in Compromise, you are likely to see a reduction in your taxes. It is very difficult to get approved for an Offer in Compromise as the IRS is keen to collect on outstanding debts. However, with the help of a Los Angeles tax attorney, your chances may be better than you think. Only a consultation with the attorney will reveal your options.

How can I qualify for an Offer in Compromise?

Qualifying for an IRS Offer in Compromise requires that you meet one of three conditions. These conditions will require written proof and the assistance of a Los Angeles tax attorney to help you ensure that your case is presented the best way it can be. The following conditions may qualify you for an Offer in Compromise.

  • Collectability is in doubt – if you owe a large sum that is outstanding, there is a statute in which the IRS is allowed to pursue the collection process. Doubt of collectability occurs when there is substantial evidence that you will not be able to pay your debts within the time allowed for collection. If you have little or no assets and are suffering from extreme circumstances, you may qualify for an Offer in Compromise based on this consideration. Speak with your Los Angeles tax attorney today to determine if you qualify for this first condition.
  • Doubts surrounding the liability – there are three reasons why a doubt may surround the actual liability. These include the incorrect interpretation of the tax law by the examiner, the taxpayer has new evidence refuting the liability or the original evidence was not examined by the examiner. Your Los Angeles tax attorney can help you put together the claim if you find that this situation applies to you.
  • As with all cases, there is one for exceptional circumstances in regards to filing for an Offer in Compromise. However, the difference with exceptional circumstances is that there is no refuting that the tax liability is correct and there is significant evidence that the taxpayer is able to pay the liability. The concern comes where paying the liability will cause an economic hardship in the taxpayer who is being sued. Speak with your Los Angeles tax attorney today to discover your options.