There are a few times when an offer in compromise may be helpful and the IRS can agree to accept a different amount than what they consider the person’s standard tax liability.
Jacksonville, FL – There are times when a person filing their taxes is unable to pay the total amount due to the government, or they want to dispute this amount. A process to settle the outstanding debt with the IRS is called an offer in compromise. After the debt is settled, the person can either make payments over the course of two years, or agree to make larger payments over a much shorter period of time.
Lawyers can always give additional advice about remaining compliant with tax laws and regulations. They can also give advice regarding whether it is beneficial for the person to go through with the offer process versus simply paying their tax bill. So it can be helpful to get assistance from Jacksonville tax lawyers during the offer to compromise process.
Reasons why the government may accept an offer in compromise
There are a few times when an offer in compromise may be helpful and the IRS can agree to accept a different amount than what they consider the person’s standard tax liability. This can happen if they think they are unlikely to be able to actually collect the person’s outstanding tax debt. There are also offers in compromise when there are questions regarding whether the information about the outstanding tax amount is correct or not. In some cases, the IRS may have equitable concerns about forcing a person to pay a tax bill that they cannot afford. However, any individual or business with an ongoing bankruptcy case is never eligible for this offer to compromise process.
Florida tax lawyers can help handle these kinds of issues, but the amount listed in any final order from a judge related to the person’s tax case will need to be paid.
Legal assistance when negotiating a settlement for the offer in compromise
Tax lawyers can be especially important during settlement negotiations. All attorneys need to have good negotiation skills to successfully ask for various kinds of settlements on their client’s behalf. An attorney may be able to get the government to agree to an amount that is substantially less than the total than the person owes depending on their particular case. The attorney can also handle other issues related to the offer. There is always the potential for other tax law problems to emerge, as it is possible that this offer in compromise process can take years to complete. A legal professional is also helpful during the appeal when an offer is rejected by the government.
Finding legal advice anywhere in the country
There are estate planning lawyers available to provide more information about tax and other practice areas. Anyone who needs a referral from USAttorneys.com can call 800-672-3103 for assistance.
Join the conversation!