Circumstances in your life may have caused you to accumulate back-tax debt to the IRS. In some cases, that debt can be many thousands of dollars. Whether you neglected to file tax returns for years or fell deep into debt using installment plans to slowly pay back your debt to the IRS, you may now be in need of tax resolution.
Essentially, tax resolution is the process of negotiation between you and the IRS where you negotiate your debt level down to a level that both you and the IRS are willing to accept. While some people choose to negotiate with the IRS themselves, it is strongly recommended that you work with an experienced tax attorney.
Strategies for Tax Resolution
The attorneys at J. DiMauro Law have years of experience in representing clients in IRS collection resolutions. Depending on your situation, there are a number of different options for resolving your debt with the IRS. As your tax lawyers, we will represent you before the IRS with the competence, zeal and practicality we are known for in Connecticut. Our strategies for tax resolution include:
- Installment Agreement – This agreement would allow you to pay for your full debt in smaller, more manageable amounts called installments.
- Currently Not Collectible – If you cannot pay anything due to a current financial hardship, the IRS may agree to place you in a status of Currently Not Collectible.
- Offer In Compromise – This is an agreement between you and the Internal Revenue Service that settles your tax liabilities for less than the full amount owed.
- Doubt to Collectibility – In connection with an offer made, the focus is generally your income and assets. Doubt as to Collectability occurs when you could not pay the full amount of tax liability owed within the remainder of the statutory period for collection. It is generally based on what the IRS believes it can reasonably collect.
- Doubt as to Liability – In connection with an offer made with Doubt to Liability, the main focus is generally your reasons why, under law, your tax liability is incorrect.
- Effective Tax Administration – An offer based on Effective Tax Administration exists when there isn’t doubt that the tax is correct and there is a potential to collect the full amount owed, but there is an exceptional circumstance that would allow the IRS to consider an OIC.
- Innocent Spouse Relief – This can provide you relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.
- Separation of Liability Relief – This provides for the allocation of additional tax owed between you and your spouse or former spouse because an item was not reported properly on a joint return.
- Equitable Relief – Equitable Relief may apply when you do not qualify for innocent spouse relief or separation of liability relief for something not reported properly on a joint return. You may also qualify for equitable relief if the correct amount of tax was reported on your joint return but the tax remains unpaid.
The stress of being buried in IRS debt is not something anyone should endure alone. If you are drowning in back-taxes, or facing a tax audit or any other type of tax controversy then you need to consult a tax attorney about tax resolution. At J. DiMauro Law, we can help you get a fair settlement