Orlando IRS Offers In Compromise Attorney
If you owe the IRS money, ignoring it won’t help the problem or make it go away. You need to address the situation, find a solution, or wind up with significant legal problems. The IRS will take all necessary legal steps to collect their money. That is why contacting an experienced Orlando IRS offers in compromise attorney is so important. At the office of Ronald Cutler, P.A., we can help you reach an agreement with the IRS on resolving your tax debt. One potential option is an Offer in Compromise.
What is an Offer in Compromise?
An Offer in Compromise involves an agreement with the IRS to pay a certain amount of your overall tax bill, but not the full amount. If the IRS accepts, the amount you pay will be treated as a payment in full, and your tax debt is satisfied. The other bonus is that the IRS will suspend collection activities while negotiations are taking place. That includes actions like tax levies, wage garnishments, and liens.
When Can You Negotiate for an Offer in Compromise?
Several scenarios could lead the IRS to consider an Offer in Compromise to settle your outstanding tax debt. These situations typically include:
- There are legitimate doubts about whether you can pay the full amount of your tax debt;
- There is a legitimate dispute with the IRS over liability, including whether you owe tax at all, or the amount that you owe;
- Collecting the outstanding tax debt would cause you undue hardship; or
- Accepting a settlement would be furthering the efficient administration of U.S. tax laws.
How Much Does an Offer in Compromise Save Me as a Taxpayer?
The potential amount you would save with an Offer in Compromise is calculated based on a specific IRS formula. It can be complicated, and there are many factors involved. If you are interested, our office can obtain the necessary information to determine what your potential Offer in Compromise amount would be.
Potential Downsides to an Offer in Compromise
Provided your offer is accepted by the IRS, it means you better access a significant amount of cash. Depending on the offer, you may need to come up with a large lump sum payment to resolve it. Many people cannot afford this, which is why they have an outstanding tax debt in the first place. For parties who can’t swing a lump sum payment like this for an Offer in Compromise, you may want to consider an installment agreement instead. With an installment agreement, the IRS agrees to accept an amount from you broken down in more manageable payments.
Contact an Orlando IRS and Tax Attorney Today
Resolving outstanding tax debt as soon as possible is essential. You do not want any potential debt collection looming over you, especially if it’s the federal government looking to collect. You cannot ignore it in hopes the debt will go away, or the IRS will accept nominal payments here and there. You must reach some type of agreement to stop aggressive collection activities like wage garnishments.
If you need assistance with an outstanding tax bill and believe an Offer in Compromise might work for you, contact Ronald Cutler, P.A. today to schedule an initial consultation.