Orlando Offer In Compromise Attorney

Orlando Offer In Compromise Lawyer

Owing back taxes is frequently stressful, and numerous financial emergencies can result in being unable to make your tax payments. Taxpayers often feel that there are no options as penalties and interest grows. If you are in this situation, know that you have multiple options, but you need to take action promptly. An Orlando Offer in Compromise attorney can help you determine options for paying back your tax debt, potentially for less than you owe.

Tax Smith Tax Attorneys: Offer in Compromise Applications in Orlando

The Internal Revenue Service (IRS) can take several actions to recover unpaid taxes but does not often begin to do so immediately. In order to avoid IRS actions, it’s important to begin negotiations. When the IRS cannot recover full back taxes from you, it is willing to find other alternate methods to recover payment. Navigating these negotiations is easier with the skilled attorneys at Tax Smith Tax Attorneys.

For decades, our team has represented individuals and businesses in their tax settlement needs. Tax laws are very complicated for many taxpayers, and it is often hard to understand what you qualify for to limit or eliminate your tax debt. We can help. Whether you are applying for an Offer in Compromise or another solution to settle your tax debt, we can help you be more successful and negotiate on your behalf.

Understanding an Offer in Compromise

An Offer in Compromise (OIC) is one path that taxpayers can use to pay back their tax debt to the IRS. If you are able to secure an OIC in Orlando, it allows you to settle your entire tax liability for a lower amount than you currently owe. While the IRS determines whether to accept an application for an OIC, it will suspend collection actions. If you are able to get an Offer in Compromise, you could save yourself significant money.

The IRS does not always accept OIC applications and, in fact, accepts very few. An OIC is an option for you if you are unable to pay your full tax liability or if doing so would put you in financial hardship. It can be hard to secure an OIC, and working with an attorney can help you determine if the option is the right one for you. The IRS expects that an OIC is one of the last options that taxpayers attempt when other payment options do not work.

When Might You Be Able to Get an Offer in Compromise?

The IRS is likely to consider an application for an OIC in the following circumstances:

1. A serious dispute with the IRS about whether you owe the stated amount of taxes or you owe any at all.
2. Genuine doubt that you would be able to pay the full tax liability.
3. Collection of the liability would be unfair to you or cause undue hardship.
4. Acceptance of an OIC would be beneficial to effective IRS administration and federal tax law.

When filing your application, you must prove that one of these scenarios exists.

Qualifications for the Program

As well as meeting one of the above circumstances, you must meet other qualifications, as well. In order to be eligible to apply for the OIC program, the following must be true:

• You are not currently in bankruptcy proceedings.
• If you are filing for the current year, you have a valid extension for that year’s tax return.
• You have filed all required tax returns and estimated payments.
• You have filed the relevant information, paid the fee, and paid the initial amount required.
• If you are an employer, then tax deposits have been made for this quarter and the past two quarters.

If you qualify under the low-income guidelines, then the fee and initial payment can be waived during the review period.

FAQs

Q: How Much Does It Cost to Prepare an Offer in Compromise?

A: It costs a minimum of $205 to apply for an Offer in Compromise, but an application should include an additional payment for an initial offer, except in certain cases. Depending on whether you choose to make a lump sum or an installment payment, the amount will differ but will be applied to your outstanding tax balance. If you work with an attorney, you will likely have high attorney fees, but your offer may be more likely to be accepted.

Q: How Hard Is It to Get an Offer in Compromise?

A: It is hard to get an Offer in Compromise, and a small number of the applications are accepted by the IRS. The acceptance rate of individual and business offers in compromise applications was 38.1% in 2017. You can increase your chances of acceptance by:

• Determining if you meet the application qualifications.
• Reviewing your application for any errors or forgotten information.
• Providing a reasonable settlement value for the offer.
• Working with an Offer in Compromise tax attorney.

Q: How Long Does an Offer in Compromise Take?

A: Processing an Offer in Compromise can take up to 24 months but may take less time in some circumstances. The amount of time it takes relies on how complex your unique situation is, the workload of the IRS location processing it, and whether there are any administrative errors regarding your application. It can take longer if you decide to appeal a final decision to deny an Offer in Compromise. Filing an Offer in Compromise is often more efficient with an attorney.

Q: How Do You Pay an Offer in Compromise?

A: There are two main ways you can pay an Offer in Compromise — either through a lump sum payment made in five or fewer payments or a periodic payment made in six or more payments. You will make an initial payment with your application and make payments if the application is accepted. These can be paid in several ways, including:

• To the US Treasury.
• Through the Electronic Federal Tax Payment System.
• To the address listed on an Offer in Compromise acceptance letter.

Review Your Options for Tax Debt

If you are unsure what options you have to manage your tax liability in Orlando, Tax Smith Tax Attorneys can help. We can determine what you qualify for and what is the ideal method to settle your debt. Our team can negotiate on your behalf and limit your stressors in the process. Contact our firm today.