Tax Resolution Strategies With The IRS

Effective Strategies For Resolving Tax Issues

Your attorney can help you explore several options to resolve or reduce tax issues with the IRS:

1. Offer in Compromise (OIC): A detailed calculation based on your financial situation, determining an amount to propose as a settlement to the IRS. This option allows you to pay less than the total owed amount.

• Payment Methods: Pay 20% of the proposed amount upfront, and the remaining 80% within five months of acceptance, or pay the proposed amount in 24 monthly installments.
• Rejection and Appeals: If your OIC is rejected, your attorney can evaluate whether to accept the decision or file an appeal.

1. Installment Agreement: A payment plan to pay off your tax debt over time, with various options available.

• Streamlined Installment Agreement: Calculate the monthly payment without providing financial information to the IRS, allowing you to keep certain assets.
• Financial Analysis-Based Installment Agreement: Determine the monthly payment based on your income and allowable expenses, which might result in not paying the full amount owed before the collection statute expires.

1. Currently Not Collectible (CNC) Status: If your expenses exceed your income and you have no assets to borrow against, the IRS may suspend collection efforts for up to two years.

• Periodic Review: The IRS will review your financial situation after 18 months to two years to determine if you need to begin an installment agreement or maintain CNC status.

Understanding The Collection Statute Of Limitations

The IRS generally has 10 years to collect taxes from the date you filed your return. However, certain actions, such as filing bankruptcy or an Offer in Compromise, can extend the statute of limitations. When the time runs out, the IRS will write off the remaining debt.

For more information on Employing Tax Resolution Strategies With IRS, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.