If you’re facing overwhelming IRS tax debt in Buffalo, NY, John D’Amato Law Office provides experienced, compassionate legal help to individuals and small businesses. With nearly 30 years of experience, John D’Amato is Buffalo’s trusted Offer in Compromise attorney. He helps clients resolve complex IRS tax problems, including negotiating offers in compromise to settle tax debt for less than the full amount owed.
Taking pride in customized solutions, Mr. D’Amato personally handles each case to ensure clients receive the best possible attention and results. He clearly explains options and guides clients toward financial peace of mind.
For a free, confidential consultation, individuals can contact John D’Amato Law Offices at (716) 703-9099.
What Is an IRS Offer in Compromise?
An IRS Offer in Compromise (OIC) is a program that lets eligible taxpayers resolve or settle their tax debt for less than the full amount they owe. If you can prove you can’t pay the full tax, penalty, and interest, the IRS may accept a reduced amount to resolve your tax liabilities. This program is a lifeline for individuals and businesses in Buffalo and across New York who are struggling with tax debt and need a fresh start.
The offer in compromise program is not automatic. The IRS will only accept your offer if it is the most you can afford to pay, based on your income, expenses, and asset equity. Once your offer is accepted and paid, you’re current with all your tax liabilities, and the IRS collection process stops.
Why Choose a Buffalo Tax Attorney for Your IRS Tax Problem?
Dealing with the IRS is a legal matter. The IRS has its own team of lawyers and agents working to collect every dollar of tax, penalty, and interest you owe. If you’re facing wage garnishment, bank levies, or aggressive IRS collection tactics, you need a professional on your side who knows the rules and can protect your hard-earned assets.
Buffalo tax attorney John D’Amato brings decades of experience in tax resolution, bankruptcy, and IRS solutions. Unlike national tax resolution companies, John personally handles your case, ensuring you get the attention and expertise you deserve. He’ll listen to your story, analyze your tax problem, and craft a strategy that gives you the best chance at relief.
Who Qualifies for the Offer in Compromise Program?
Not everyone with tax debt qualifies for an offer in compromise. The IRS has strict eligibility rules. Generally, you must:
- Have filed all required tax returns
- Not be in bankruptcy
- Have received a bill for at least one tax debt included on your offer
- Make all required estimated tax payments for the current year
- For business owners, be up to date with federal tax deposits.
You may qualify under three main grounds:
- Doubt as to Collectability: This means you can’t pay the full amount, and your assets or income are insufficient to pay your tax debt.
- Doubt as to Liability: In this situation, you believe you don’t actually owe the tax.
- Effective Tax Administration: This means paying the tax would cause severe financial hardship or be unfair due to special circumstances.
If you’re unsure, use the IRS Offer in Compromise Pre-Qualifier tool on their website, or better yet, consult our Buffalo tax attorney to determine your eligibility.
What Are the Steps to Apply for an Offer in Compromise?
Applying for an IRS offer in compromise is a detailed process:
- Gather financial documents: Collect pay stubs, bank statements, asset valuations, monthly bills, and tax returns.
- Complete IRS forms: Most individuals use Form 656 (Offer in Compromise) and Form 433-A (Collection Information Statement). Businesses use Form 433-B.
- Calculate offer amount: Compute your appropriate offer amount using IRS formulas and guidelines, which factors in your wages and ability to pay.
- Submit application: Include a non-refundable application fee and initial payment.
- Wait for IRS Review: The IRS may take six to eight months or longer to decide.
- Respond to requests: Be ready to provide additional information if the IRS asks.
Our Buffalo tax attorney can help you prepare a complete and accurate application, maximizing your chances of approval and avoiding costly mistakes.
How Does the IRS Evaluate Your Offer?
The IRS will scrutinize your financial situation. They look at:
- Whether you satisfy eligibility requisites
- Monthly income and expenses
- Equity in assets (home, vehicles, or retirement accounts, for example)
- Ability to pay overtime
- Reasonable collection potential.
The offer amount must reflect what the IRS could reasonably collect from you within a reasonable period. If you have significant equity or disposable income, your offer may be rejected or require a higher payment.
The IRS only considers reasonable living expenses — don’t expect them to allow private school tuition or luxury spending in your calculations.
Common Mistakes That Can Sink Your Offer
Many taxpayers try to “DIY” their offer in compromise and end up rejected. Here are some common pitfalls:
- Not filing all required tax returns before applying
- Understating income or hiding assets (the IRS will find out)
- Failing to include required documentation
- Offering too little without justification
- Not making the required estimated tax payments.
Even a small mistake can lead to rejection, wasted fees, and lost time. That’s why having a tax attorney with years of experience is crucial.
What Happens If Your Offer Is Accepted or Rejected?
If Accepted:
- You must pay the offer amount as agreed (lump sum or periodic payments).
- The IRS releases any tax liens once payments are complete.
- You must stay current on all tax filings and payments for five years, or the agreement can default and you’ll owe the full original debt again (less credit to you for payments made).
If Rejected:
- You can appeal within 30 days.
- You may be able to negotiate or submit a revised offer.
- Alternatively, consider other tax resolution options like installment agreements or bankruptcy.
Offer in Compromise Versus Other Tax Resolution Solutions
How does an offer in compromise compare to other IRS tax resolution options? Here’s a quick table:
| Solution | Settles for Less? | Stops Collection? | Credit Impact | Requires Full Financial Disclosure? |
| Offer in Compromise | Yes | Yes | Minimal | Yes |
| Installment Agreement | No | Yes (if current) | Minimal | Yes |
| Currently Not Collectible | No | Yes (temporarily) | Minimal | Yes |
| Bankruptcy | Sometimes | Yes | Significant | Yes |
The offer in compromise program is often the best solution for those who truly cannot afford to pay their IRS tax debt in full, but it’s not the only option. Buffalo tax attorney John D’Amato can help you weigh the pros and cons for your unique situation.
Example Scenarios: How Buffalo Clients Can Find Tax Relief
Let’s bring this home by considering some possible scenarios:
- A single mother in Buffalo is facing $40,000 in IRS tax debt after a divorce. With a lawyer’s guidance, she qualifies for an offer in compromise and settles for just $4,500. The relief is immediate — no more wage garnishment, no more sleepless nights.
- A small business owner in Amherst is hit with penalties and interest after a downturn. The IRS is threatening to levy his bank account. Our legal team prepares a detailed OIC application, showing the business’s true financial hardship. The IRS accepts an offer for a fraction of what is owed, saving the business and several jobs.
- A retiree in Cheektowaga discovers years of unpaid taxes after selling a home. With limited retirement income, he cannot afford to pay. After enlisting an attorney, he negotiates with the IRS, and his offer is accepted, allowing him to keep his retirement savings.
Why Trust John D’Amato Law Offices for Your Tax Resolution?
When you’re facing the IRS, you need more than just a tax attorney. You need an advocate with a “teacher’s heart,” decades of experience, and a commitment for treating every client with dignity and respect. That’s what you get with John D’Amato Law Offices in Buffalo, New York.
- Decades of experience: With nearly 30 years helping individuals and businesses resolve IRS tax problems, John D’Amato concentrates in this field.
- Personal attention: John handles every case himself — no passing off to junior associates.
- Proven results: Clients praise John for clear communication, creative solutions, and life-changing outcomes.
- Local knowledge: The D’Amato law firm has a deep understanding of Buffalo and New York state tax issues, plus IRS federal rules and procedures.
- No judgment: John and his team never look down on clients. We understand life happens — medical problems, job loss, divorce, and other major upheavals — and we’re here to help you move forward.
Don’t trust your future to a faceless tax resolution company. Work with a Buffalo professional who cares about your success and will fight for your best interest.
Ready to Resolve Your Tax Debt? Contact Buffalo’s Trusted Tax Attorney.
If you’re struggling with IRS tax debt, penalties, or relentless collection efforts, don’t wait. The sooner you act, the more options you have. John D’Amato Law Offices offers a free, confidential consultation. He’s ready to discuss your tax problem and explore the best solution — whether it’s an offer in compromise, installment agreement, or another form of tax resolution.
Don’t let IRS issues overwhelm your life. With the right strategy and a dedicated Buffalo tax attorney, you can resolve your tax problem, protect your assets, and move forward with confidence. Call John D’Amato, Buffalo’s trusted tax attorney, at (716) 703-9099 today.