Tax Debt Settlement: How our process works

Anyone who is facing a tax debt has an opportunity to reach a settlement for their back taxes owed. This settlement may come in the form of paying nothing, paying some but not all of their tax owed, or paying off some or all of the tax debt over several years. Depending on each person’s unique circumstances will determine which tax solution will work best. Call us for a free consultation with our tax attorney to learn about your options.

Step 1: We have a consultation with you to learn about your unique financial condition and overall circumstances. This includes your employment, family, health, income, expenses, etc.

Step 2: We file a power of attorney to pull your tax transcripts to see how much you owe, why you owe, if you have any unfiled tax returns, and if the IRS has filed substitute for returns for you. We also check to see when your tax debt will expire due to the IRS statute of limitations.

Step 3: We address any pressing collection activity such as wage garnishment or bank levy. We have these levies and garnishment released ASAP.

Step 4: We then bring you into compliance which means we prepare and file any unfiled tax returns and address any withholding issues you may have such as unsatisfactory estimated tax payments or not enough withholding on your W-2. If the IRS filed returns for you we address whether we should file amended returns to replace those and if you will get any benefit from it. This is important because if you file an amended return the statute of limitations will start over again so it is necessary to analyze the benefit of doing this.

Step 5: After we have an overall picture of your financial condition we will give you some options and discuss them with you to see what fits best for you. These options include the following:

  • IRS Penalty Abatement: We can request an abatement of penalties based on first time relief or based on reasonable cause. This can significantly reduce the amount of tax owed if done correctly.
  • Offer in Compromise: This is a compromise between you and the IRS and can result in significantly reducing the amount you have to pay. There are some risks associated with this so it is important to discuss this with our tax attorney before deciding on this option.
  • Currently Non Collectible: This is a common form of settlement where the IRS agrees to not collect upon the tax debt that you owe due to your financial hardship. Some people stay in this status until the statute of limitations runs out and they end up not having to pay anything towards their tax debt.
  • Partial Pay Installment Agreement: This is similar to currently non collectible but instead of paying nothing per month you pay a certain amount but it will only pay off a portion of your tax debt by the time the statute of limitations runs out.
  • Full Pay Installment Agreement: This resolution works for some people who have a healthy financial condition and have no hardship. This will give you several years to pay off your tax debt.
  • Innocent Spouse Relief: This is a form of tax relief where you shift responsibility for a joint tax liability to your spouse or ex spouse. There are similar forms of relief as this if you do not qualify for this one.

Keep what’s yours! Free Consultation available. Call us now to speak with our tax attorney and see what you qualify for.