IRS Tax Settlements
Before a case is referred to the Department of Justice, the Internal Revenue Code authorizes the IRS to settle the debt. The taxpayer must be able to establish that they either have no way to pay the tax debt or that they do not actually owe the debt. This must be proven to the satisfaction of the Internal Revenue Service. The Offer in Compromise (OIC), otherwise, will not be accepted.
When it is not likely that the taxpayer’s debt can be collected in the full amount, the IRS will accept an OIC. The Offer In Compromise is a legal and legitimate method for declaring cases as unable to be collected on. It is also appropriate for cases where protracted installment agreements and negotiation of tax settlements are needed. The main focus is on achieving the collection at the earliest time and with minimal cost to the government.
We try to avoid using the term “tax settlement” at all costs. However, it is the best way to describe the process in layman’s terms. The correct term used by the IRS is Offer in Compromise. It is otherwise known as the OIC. Not every taxpayer can qualify for this relief method. The settlement amount may be a large reduction of the original tax debt. But it still may not be practical. An Offer in Compromise that is prepared by a tax professional can be very costly.
In the event that you have tax liens or levies, or back taxes, contact us at one of our local offices. It is essential to notify us once you have received notice of “Intent to Levy.” This is because time immediately becomes critical. The taxpayer only has a certain amount of time to issue a response. The date of response is not based on the date the letter was received but instead based on the date of issue. It is essential to begin negotiations right away in order to resolve the tax debt favorably. You may also get IRS tax forms directly from their site.
It is possible to resolve Internal Revenue Services tax problems even if large amounts of money are owed or if you haven’t filed taxes in years. If you don’t take steps to resolve the problem, it is possible that the IRS will file a tax lien, levy your wages and bank account, and potentially seize and sell your home, business, or car. BFS tax services are offered to make sure that these unwanted circumstances do not occur with the IRS and state taxing authorities.
At Business and Financial Solutions, we offer assistance with bank levies, wage garnishments, trust fund recovery penalties, unfiled returns, Offer in Compromise, asset seizures, innocent spouse, back payroll taxes, interest, and penalty abatements, lien discharges and subordinations, installment agreements as well as defaulted agreements with the state or IRS.