Life circumstances can sometimes prevent you from paying being able to pay your taxes in full each year. In these cases, you will need to seek out tax relief. Tax settlements are generally the most common form of tax relief. There are a number of settlement options the IRS offers to taxpayers who are in need of relief. These options are often complex to understand and file. Instead of trying to work through a tax settlement on your own, you will benefit from the help of an experienced lawyer. In many cases, a lawyer will be able to help you pay considerably less than you owe.
Types of Tax Relief
At J. DiMauro Law, we are prepared to help you through the tax relief process. We offer a variety of tax settlement options for IRS Collection resolutions. These include:
An Installment agreement allows you to pay your full debt in smaller, more manageable amounts. Installment agreements generally require equal monthly payments. The amount of your installment payments will be based on the amount you owe and your ability to pay that amount within the time the IRS can legally collect payment from you.
Currently Not Collectible
If you are unable to pay anything because of a current financial hardship, the IRS may agree to place you in Currently Not Collectible. In general, the IRS will suspend collection activities for usually one year if it believes that it cannot currently collect the tax liability.
Once the IRS declares a taxpayer currently not collectible, the IRS must stop all collection activities, including levies and garnishments. The IRS must send an annual statement to the taxpayer stating the amount of tax still owed. However, this annual statement is not a bill.
Offer In Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS has created a process for Offers that, for the most part, has been in place for many years.
Generally, there are three types of Offers available:
- Doubt to Collectibility
- Doubt as to Liability
- Effective Tax Administration
Innocent Spouse Relief
Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. Both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise as a result of the joint return even if they later divorce.
Joint and several liability means that each taxpayer is legally responsible for the entire liability. Thus, both spouses are generally held responsible for all the tax due even if one spouse earned all the income or claimed improper deductions or credits. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. In some cases, however, a spouse can get relief from joint and several liabilities.
We are ready to work with you to determine the appropriate IRS collection resolution based on your specific circumstances. As your tax lawyers, we are prepared to represent you before the IRS with competence, zeal and practicality. Our experienced lawyers have developed proven strategies to help you receive the tax relief you need.