IRS Offer in Compromise in San Diego
& Finding an IRS Offer in Compromise Lawyer
An IRS offer in compromise is a tax resolution option for taxpayers who are struggling to pay their full tax liability to the Internal Revenue Service (IRS). This option is available for federal IRS taxes in San Diego, allowing taxpayers to settle their tax debt with a fast-track solution for less than the full amount owed. It’s a financial relief agreement that can help taxpayers gain control of their finances and get out of debt.
An IRS offer in compromise is a written agreement between the taxpayer and the tax authority (IRS) in which the taxpayer agrees to pay a lump sum or a payment plan that is less than the full tax liability owed. This agreement is considered a compromise because the taxpayer is settling their tax debt for less than the total amount while the tax authority is accepting a lower payment as satisfaction of the tax liability. This aims to help taxpayers who can’t afford to pay the full amount due while also providing the tax authority with an assurance that they are receiving some payment rather than nothing.
Offer Must Meet Criteria to Qualify
To be eligible for an IRS offer in compromise for federal taxpayers in San Diego, taxpayers must meet specific criteria, including:
- Being current on all tax filings and payments
- Being unable to pay the full tax liability owed.
- Additionally, the tax authority will consider the taxpayer’s income, expenses, and assets to determine their ability to pay. If the taxpayer’s financial situation has changed and they can now pay the full tax liability, their offer in compromise may be rejected.
Officially submitting an offer in compromise for federal taxpayers in San Diego typically involves gathering financial information, including tax returns, pay stubs, bank statements, and other financial documents. This information is used to determine the taxpayer’s ability to pay and is submitted along with the offer in compromise form to the tax authority.
IRS Review of Offer: Accept or Reject
Once the IRS offer in compromise is submitted, the IRS will review the information and decide on the taxpayer’s eligibility and settlement amount. This process can take several months, and the taxpayer may be required to provide additional information or documentation during the review process. Eligibility considerations and the settlement amount are based on each taxpayer’s unique financial situation, so it is important to seek advice from a tax professional and attorney before submitting an IRS offer in compromise. This can safeguard taxpayers from mistakes or additional liabilities if the offer in compromise is rejected.
If the offer in compromise is formally accepted, the taxpayer must make the agreed-upon payments and comply with any other conditions outlined in the agreement. This will involve making payments on time and in full to satisfy the tax liability. If the taxpayer fails to make the payments or comply with the terms of the agreement, the tax authority may rule them in default on the offer in compromise and pursue collection action, including wage garnishment or bank levy. An federal tax attorney can help taxpayers understand the implications of an uncompliant offer in compromise and can provide advice on how to best resolve their IRS tax debt.
It is important to note that an offer in compromise is not a guarantee of acceptance, and there is no guarantee of the settlement amount. The tax authority will consider each offer in compromise on a case-by-case basis, considering the taxpayer’s specific circumstances and financial situation. It is also important to note that an offer in compromise does not reduce or eliminate tax liability for future years. However, this is a one-time solution for resolving a past year’s tax liability that can help taxpayers avoid further collection action.
Delia Law Can Help With IRS Offer in Compromise for Federal Taxpayers in San Diego
At Delia Law, we are skilled in resolving IRS tax liabilities for federal taxpayers in San Diego who have historically struggled to pay their IRS back taxes. Our team of experienced tax attorneys and professionals can assist with the IRS offer in compromise process, including gathering and submitting financial information, negotiating with the IRS, and ensuring compliance with the agreement. This is the most streamlined way for taxpayers to reduce their IRS tax liability and achieve financial freedom under the supervision of our experienced tax attorneys.
Why You Should Always Consider Hiring a Federal Tax Lawyer
With our knowledge and experience in resolving IRS tax liabilities, we can help you navigate the complex federal tax system and protect your rights throughout the process. We will gather all necessary information to determine your eligibility for an offer in compromise and negotiate on your behalf to reach a settlement that is in your best interest. We understand the nuances of the federal tax system and can adjust our strategies to best serve your immediate and long-term financial objectives.
If you are facing a tax liability and cannot pay the full amount owed, contact us and schedule a complimentary case evaluation to discuss your options. Let us help you resolve your IRS tax debt and put your mind at ease for a brighter financial future.