The Austin, Texas IRS enrolled agents and specialists at My Tax Pro will evaluate the unique set of circumstances in each tax debt case to determine the best possible avenues to reconcile IRS tax debt.
Offer In Compromise
One such avenue that reduces the burden of tax debt is an Offer in Compromise – an agreement between the IRS and the debt holder to settle for a smaller amount than the total sum owed. This option is good for debt holders who can prove that they have been trying to resolve the debt in good faith but it’s apparent the debt will not be resolved in a reasonable amount of time, i.e. before the statute of limitations are up, and the debt and repayment is causing unreasonable financial hardship. Eligibility is determined according to the total value of your assets, your income, your expenses and your ability to pay. An Offer in Compromise is only available to those that qualify. You must be in good standing with the IRS at the time you submit the offer; your payments and filing status must be current. Debt holders in the middle of a bankruptcy are ineligible.
Negotiations with the IRS
Negotiations with the IRS can be challenging and it is vitally important to be fully prepared with all of the required documentation to substantiate your eligibility for an Offer in Compromise; the process is extensive and a response from the IRS may take months. Even if you appear to be eligible, there is no guarantee your offer will be accepted. During the evaluation of your offer, the IRS may file a federal tax lien. If the offer is accepted, any federal tax liens will only be released after the terms of the offer have been satisfied. Upon acceptance of the Offer in Compromise, two repayment options are available:
- Lump Sum Cash
- Periodic Payment
The IRS enrolled agents and tax preparing professionals of My Tax Pro will help determine if you are eligible to be considered for an Offer in Compromise and, if you are, will guide you through this arduous process and organize, prepare and submit the offer, taking this tiresome and monumental task off your shoulders. If you are not eligible or your appeal is rejected, there are many other options to consider and you will learn of the best options to deal with your particular situation. With decades of experience dealing with the IRS, My Tax Pro are master negotiators and will work tirelessly to resolve your tax woes. For your free consultation, do not hesitate to contact us today.