Fort Lauderdale IRS Offer in Compromise Settlement Lawyer Providing Legal Counsel and Services for Clients with IRS Tax Debt in Florida
If you owe the IRS money and do not have a way of paying your balance in full, you may want to see if you qualify for an Offer in Compromise. The Offer in Compromise may enable you to solve your IRS tax problems and even settle for less than what you owe. Our firm explains how this program works and how you may benefit from working with a seasoned tax attorney when it is time to submit your tax settlement application.
What Is the Offer in Compromise Program?
An Offer in Compromise is the IRS’ tax resolution debt settlement program. It’s a program for taxpayers who owe the IRS more money than they can afford to pay. Think of it as the IRS’s version of a “fresh start” when it comes to tax debt. If you are approved to participate, the IRS may accept a lesser tax settlement amount that often amounts to just a fraction of what you owe, enabling you to settle your tax debt and move on with your life.
However, it isn’t always easy to gain approval due to its strict criteria. When analyzing your eligibility, the IRS considers your income, assets, expenses, ability to pay, and whether paying the full amount would cause financial hardship. Because the priority for the IRS is to collect the amount you owe it, it will likely accept an offer in compromise if it has reason to believe that you wouldn’t be able to pay anything otherwise and that the tax settlement amount you are offering is the most it can expect to collect from you anytime soon. It is worth mentioning that your odds of acceptance may increase significantly when you are working with a professional with relevant experience in negotiating with the IRS.
Who Is Eligible for an Offer in Compromise?
The IRS has an online tool that can help you figure out if you are eligible for an Offer in Compromise, but in general terms, you may qualify if you have filed all your tax returns and made all necessary estimated tax payments, and are not currently in the process of declaring bankruptcy. If you are applying for the current year, you must have filed a valid extension. In addition, if you are an employer, you must have made all tax deposits for the current quarter as well as for the past two quarters. Suppose you apply for an Offer in Compromise and your application is denied. In that case, the IRS will return your application and may either return your application fee or apply it towards your total tax balance. In order to avoid wasting time and money applying for an Offer in Compromise and having it denied, it is best to work with a professional such as a tax attorney who can help you prepare your application and increase your chances of acceptance.
How Are National and Local Standards Used to Calculate an Offer in Compromise?
The IRS uses two different collection financial standards to calculate how much money you likely need to cover your basic living expenses. The National Standards are used for five different necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous, which may include any of the previous expenses that exceed the standards or other categories such as credit card and bank fees or school supplies. The IRS allows the National Standards for your family size and income level regardless of how much you really spend.
However, the Local Standards are the amounts you spend on transportation, housing, and utilities every month. This is limited to the amounts you actually spend every month or the standard amounts (whichever is less). Both of these standards are taken into consideration by the IRS when adding up the final amount of your Offer in Compromise and figuring out how much you may be able to afford in payments every month.
Why Should I Work With a Tax Attorney?
Being unable to pay your tax debt is already a stressful situation, but by working out a solution through an Offer in Compromise, you may just find a way to get back on track and settle your issues with the IRS. However, preparing your application and trying to figure out if you are eligible and how much money you should offer the IRS can be pretty complicated if you are not working with an experienced tax attorney.
By working with an IRS Offer in Compromise settlement lawyer in Fort Lauderdale, you can be more confident that you are taking the right steps and increasing the chances that your offer will be accepted. Your attorney knows how to negotiate with the Internal Revenue Service and could even help you find a way to pay much less than what you owe. The Law Office of Ray Haselman has helped many clients to successfully submit an Offer in Compromise and save significant amounts of time and money, without the hassle of trying to figure it all out by themselves. Ray Haselman is a Fort Lauderdale tax attorney who is ready to help you deal with your tax liability and get your life back on track. If you currently owe the IRS money or believe you won’t be able to afford your taxes, reach out to the Law Office of Ray Haselman at 786-522-0410 to see how we can help.