FAQs

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I filed my tax returns but didn't have the money to pay what was owed. What do I do now?

When the Internal Revenue Service sends you a notice stating that you owe back taxes, the amount is usually much higher than what you thought because they have tacked on penalties and interest. Of course you could just write a check and pay them the full amount, including penalties and interest. Worse you could just ignore them; meanwhile the penalties and interest keep piling up. Or you could hire my firm, as an Enrolled Agent who is experienced in the matters of back taxes. By analyzing your situation, we can determine your best course of action. For many taxpayers with no ability to pay, this typically leads to an Offer in Compromise.

What is an Offer in Compromise?

An Offer in Compromise is an out of court agreement between the IRS and the taxpayer that resolves the taxpayer's liability. The Internal Revenue Service has the authority to settle or compromise federal tax liabilities by accepting less than full payment under certain circumstances. These circumstances are: Doubt as to liability - Doubt exists that the assessed tax is correct. Doubt as to collectibility (most common) - Doubt exists that you could ever pay the full amount of tax owed. Effective tax administration - (i.e., economic hardship)

How long does it take for an OIC to be approved by the IRS?

Depending on the IRS caseload, it generally takes eight to ten months. But no matter how long it takes the Internal Revenue Service to review the Offer in Compromise, during that time all further collection activities are suspended.

Will I have to see or speak to the IRS if you take my case?

No! We will handle your case in its entirety. All communications with the IRS will be made directly through myself as an Enrolled Agent.

Can the IRS ever revoke an approved and paid Offer in Compromise?

Your Offer will not be revoked as long as you comply with the requirements relating to filing returns and paying required taxes for the five years after the date your Offer is approved by the Internal Revenue Service.

What type of documents will the IRS ask for?

Paycheck stubs, bank statements, mortgage or rent payments ,utility bills, etc. We will provide you with a checklist of documentation to collect in assisting us in settling your IRS debt.