Fort Lauderdale Offers in Compromise Attorney
Most taxpayers would agree that taxes take up a significant portion of their budget. Taxes can be quite high and sometimes, people cannot pay the full amount they owe. Other times, the Internal Revenue Service (IRS) and a taxpayer disagree about the amount of taxes that are owed. In these situations, an offer in compromise can often provide a solution.
Making such an offer to the IRS in order to avoid further consequences is not easy, though. A Fort Lauderdale offers in compromise attorney can help you through the process and give you the best chance of a successful outcome.
What is an Offer in Compromise?
An offer in compromise is essentially settling your debt with the IRS. When you settle the debt with any entity, you typically pay less than what the agency says is owed. This is true with an offer in compromise, too. You must ask the IRS if they would accept an offer in compromise and in some situations, they may agree. If the IRS does agree to an offer in compromise, the agency will also have to stop any collection activity as you are negotiating the offers in compromise. This means your wages cannot be garnished or levied, and you cannot face any other consequences pertaining to the debt.
The IRS uses their own formula when determining how much an offer in compromise should be for. The formula is highly complex and takes many different factors into consideration. A tax lawyer can inform you of the factors the agency will consider, and provide an estimate regarding how much your offer may be.
When are You Eligible for an Offer in Compromise?
Unfortunately, the IRS will not always agree to an offer in compromise. However, there are circumstances when the agency will agree to this solution. These instances are as follows:
- You have a valid disagreement with the IRS about the debt, such as the amount you owe or the fact that you owe any taxes at all
- There is valid doubt regarding whether you will be able to repay the full amount the IRS is claiming you owe
- Collecting the debt would place you in undue financial hardship
If the IRS finds that you are eligible and agrees to your offer in compromise, they will likely inform you of the two possible options for moving forward. Sometimes, they may demand that you pay the debt in a lump sum, which could be difficult if the amount of the offer is significant. Or, the IRS may agree to draft an installment agreement, under which you would pay a certain amount of the offer every month.
Our Offers in Compromise Attorney in Fort Lauderdale Can Help with Your Tax Issues
An offer in compromise might be right for your situation, but there may also be better options available. At Ronald Cutler, P.A., our Fort Lauderdale offers in compromise attorney can provide the sound legal advice you need while helping you with your tax issue. Call us today at 386-490-9949 or contact us online to request a free consultation.