Negotiate A Settlement
The IRS program called “Offer in Compromise” permits the IRS to forgive even a significant portion of the balance the IRS states is owed if the balance is so large that repayment is not possible. The IRS can simply agree to settle for a smaller balance. This can result in the forgiveness of tax, penalties, and interest of 95% or more of the original balance claimed.
The settlement you propose will not be based on the amount you owe. Rather, your settlement is based on your ability to pay the IRS debt and the equity existing in your assets.
Installment Agreement
An installment agreement between you and the IRS provides for monthly payments to the IRS in order to reduce the debt to the IRS. Although interest and penalties (in a reduced amount) will continue, the installment agreement is important because the IRS will not file liens or seize your property while you are making the agreed upon payments.
Erase Penalties
Penalties are added to unpaid IRS debt as punishment for nonpayment and to encourage payment. Penalties can be erased if you have a good excuse (i.e., “reasonable cause”) to give to the IRS. The excuse presented will be different depending on your particular situation. We will review your excuse with you, develop it, and present it to the IRS. Sometimes, we can join a request to erase penalties with a request for an installment agreement.
Bankruptcy
Yes, it is possible for people to discharge income taxes by filing for bankruptcy relief in some instances. Bankruptcy is a powerful remedy, and in some instances, filing for bankruptcy is the most effective option to erase IRS income tax debt. A competent attorney experienced in tax law and bankruptcy can navigate the complex rules for you to tell you if your income tax can be erased.
John D’Amato, Esq. is proud to say that his office is a debt relief agency and he has personally helped thousands of individuals file for bankruptcy relief.
Statute of Limitations
Generally, the IRS has ten years to collect from the date the tax was assessed. This limited time period to collect is called a “Statute of Limitations”. If this amount of time has passed, the IRS must stop collection because the debt would no longer be due. The law is complex and exceptions do exist to this general rule.
Collection Appeals
The decision by the IRS to levy (or seize) your property can be appealed to the Appeals Division of the IRS. The Appeals Division is independent of the IRS collection division. An officer from the Appeals Division will promptly decide if the IRS decision to take your property should be reversed.
Audit Representation
An IRS audit letter is about the worst piece of mail you can ever receive. No individual or business should ever meet directly with the IRS auditor without a representative. Instead, have your attorney meet with the IRS and handle all communications. This puts the IRS on notice that you are serious about your audit. It also allows you to continue on with your business and personal life.
Those that represent themselves often do not realize how considerable will be their time spent assembling documents, meeting with the revenue agent, and trying to obtain an understanding of the tax laws.
Audits generally begin with one year and then expand to other years, as the auditor makes changes. Our goal will be to prevent the audit from expanding to other years. Competent representation will often result in a savings on your tax bill which is meaningful and less than the expense for your representative. Also, if you do not comply with the auditor’s requests, the cost of any charges by the auditor can be more than your annual income, with all the penalties and interest that will be added.