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ARE TAX ISSUES KEEPING YOU AWAKE AT NIGHT?
If you have unpaid personal income taxes, then you may have a lot to worry about.
The IRS is the most aggressive collection agency on the planet.
The IRS can issue a Notice of Levy, and freeze all your assets.
They can take your home, business, garnish your wages, and seize and sell any or all of your assets to satisfy your obligations.
However, the attorneys at Boyer Coffy, LLC know how to level the playing field and prevent these potentially catastrophic problems.
There is a powerful solution to your problem, if you can qualify!
What Is An Offer in Compromise?
An offer in compromise is a type of tax relief that a taxpayer with an unsatisfied tax debt can apply to receive. If the relief is granted, the taxpayer will be permitted by the IRS to settle his or her tax debt for less than the full amount due. For taxpayers who may be facing a particular hardship or other circumstances where t is impossible to satisfy the tax debt may benefit from this type of relief. While this type of relief is appealing to a person with a large debt, approval is difficult to secure. In fact, only about one in every five applicants for the program will be approved. Therefore it is essential for taxpayers to work with an experienced tax professional who understands the program requirements and the types of evidence that must be present to the IRS.
Whether your offer in compromise is accepted or rejected is based on:
- Ability to pay & Doubt as to collectability - The taxpayer's ability to pay the tax debt is computed on the basis of the reasonable collection potential (RCP) for the matter. In most cases the IRS will not accept an offer in compromise if it is less than the taxpayer's RCP.
- Certainty regarding the liability - If it is clear that there is a tax liability due and owning, the IRS is less likely to grant a compromise request. A compromise can satisfy this potential grounds only when there is a real dispute about the existence of a tax debt or the amount under the applicable tax code provision.
- Hardship, equity, or exceptional circumstances - If principles of the effective administration of the tax code exist such that requiring payment would result in hardship or other inequity, the offer in compromise may be accepted. However, the bar to meet this standard is significant.
Now before you try this on your own, remember, the U.S Tax Code is 5296 pages, and weighed 9.4 Pounds.
There are also tax rulings, tax publications and tax case law, rules of evidence, rules of procedure.
Some people think that they can just fill out the IRS forms and read the instructions and handle it on their own.
The rate of rejection of Offer in Compromise was 59.68% in 2019.
So if you want to try this on your own, just obtain IRS Publications 433-a and 656.
Good luck, you are going to need it, the odds are against you, even with an attorney.
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