What Is an Offer in Compromise?
An offer in compromise allows you to settle your tax liability to the IRS by paying an amount that is less than the total of what you actually owe. It’s not too good to be true, and in fact, those who can’t satisfy their debt with an installment agreement might consider making an offer in compromise to the IRS.
That said, some basic qualifications must first be met:
- You must have filed all tax returns for the current year
- Paid all required estimated taxes for the current year
- Made all required federal tax deposits for the current quarter (if you are a business owner with employees)
As an additional consideration, you shouldn’t expect to lowball the IRS. Your offer in compromise must be equal or greater to what the IRS believes it could shake out of you if it took a collections action such as a lien or levy. By working with a tax specialist from our firm, you can get a better idea of how much you should propose paying to the IRS if you want to settle your tax debt for less than its worth.
What is a Penalty Abatement?
Another way of reducing what you owe to the IRS is to challenge the penalties it placed against you. Shockingly, penalties and interest can make up nearly 40 percent of your total tax bill when you are penalized for filing a late return or not paying your taxes in full.
If your initial tax liability nearly doubled because of penalties, the good news is that a capable tax attorney from our law firm can help you remove or reduce the penalties you owe.
Contact Us for Assistance
It’s possible to reduce what you owe to the IRS when you work with capable and competent attorneys and accountants. At Alpha Tax Relief Specialists, our team brings more than 80 years of combined experience to bear for our clients. We assist clients with important negotiations involving the IRS to make their tax liabilities more affordable.
If you want to explore the options that may be available to you when it comes to lowering your tax debt, reach out to Alpha Tax Relief Specialists for help. Schedule a complimentary consultation with our attorneys and accountants today if you want a risk-free opportunity to learn more about how we can help you.