If you have a large tax debt that you are unable to pay, you have options that you may not be aware of. I will analyze your situation and recommend a solid course of action with the goal of giving you peace of mind, minimizing your financial burden and satisfying the IRS.
The big national tax firms that advertise on TV and radio do one thing- Offers In Compromise. What they don't tell you: OIC totaled less than 1% of back taxes collected by the IRS in 2016. The "Offer Mill" will collect a fee from you, file an Offer, and if rejected, keep your fee and say goodbye.
I am a Portland, Oregon based Tax Consultant helping people with tax problems by analyzing and exploring all of the options available. We will decide on a course of action and proceed together.
Suspension of Levy Action - You just got a nasty-gram informing you the IRS is intending to garnish your wages or seize your bank account in 30 days. Don't panic- an appeal can be filed which automatically suspends adverse action by the IRS while we are working with them to resolve your case.
Offer in Compromise - Often mentioned, but not accepted by the IRS as often as most people believe. However, it can be a great option and is always the place to start when analyzing your situation. How it works: if it can be established that your ability to pay your debt is in doubt, the IRS may agree to accept a lesser amount.
Currently Non-Collectible - Maybe you owe the IRS a large amount of money and you simply are not and will not be able to pay it. Ever. Believe it or not, the IRS may be willing to consider you Non-Collectible. Period, end of story, collection efforts stop. But to make that happen, I have to take you through the proper procedures.
Installment Agreements - If you are unable to pay your tax debt in one lump sum, the IRS may allow you to establish a payment plan of monthly installments that is workable for your budget.
Partial Pay Installment Agreements - Similar to above, but the IRS agrees that full payment of debt may not be possible.
Injured Spouse Relief - If your tax problems were caused by your spouse without your consent, you have a right to be relieved of your tax debt, and the IRS has the authority to take those factors into consideration.
Penalty Abatement - Tax debt is usually compounded by penalties and interest. If unusual or adverse circumstances caused you to fall behind on your taxes, the IRS will consider dropping these extra charges.
Appeals - Your Best Friends Forever at the IRS. All decisions by Revenue Officers and Revenue Agents can be appealed. The mission of the Appeals Office is to save the IRS the time and expense of going to court. If giving you a better deal will avoid litigation, the Appeals Office will usually try to make that happen.
Audit Reconsideration - Often a poorly prepared tax return will contribute to the size of the tax debt. The same problem arises when no return is filed and the IRS generates a Substitute For Return, usually without regard to any deductions or available credits. If I think I can prepare a better return, I will file for an Audit Reconsideration, giving us the opportunity to submit a return that reduces your tax burden.