• Offer in Compromise:
Allows taxpayers to settle for far less than the total amount owed if they meet the strict guidelines and complete the paperwork correctly. This also is a long process could take as long as 2 years. Most are determined in less than a year depending on the IRS.
• Partial Payment Installment Agreement: Allows the taxpayer to make small monthly payments towards the tax liability. This is determined based on the ability to pay now usually with a shorter time for the collection statutes run their course. The tax amount would usually be forgiven if it is not all paid back before the collection statutes expire.
• Uncollectible/Hardship: The IRS stops collection actions until the taxpayer's financial situation improves. Usually reviewed in 2 years based on taxes filed in most cases. Also the tax liability may be forgiven if their situation doesn't improve before the statute expires.
• Penalty Abatement: Sometimes very tough be we are successful at penalty abatement. The IRS will determine if the taxpayer has an acceptable reason for not staying in compliance with tax laws, they may waive penalties that were charged.
• Amending tax returns: Many situations come up where the taxpayer may have made errors with prior filings or the Substitute For Return (SFR) the IRS filed on their behalf which caused them to owe more taxes than they actually should have. In these situations, we file an amended tax return to lower your tax liability.
We always will warn clients to watch out for those tax companies that promise they can settle taxes for less because there is no way of anyone knowing for sure before knowing your complete tax and financial situation.