Offers in Compromise – Glendale Debt Relief Lawyer
Legal Help When You Cannot Repay Your Tax Debt
It is not uncommon for Americans in all walks of life to feel overwhelmed by their tax debt. Discovering a way out can be difficult, if you go through this process alone. At RJB Law Offices, our Glendale tax lawyer can explore the option of using an offer in compromise with the Internal Revenue Service (IRS) to resolve your debt more easily.
Offer in Compromise Processes
Not everyone will be approved to use an offer in compromise when facing overbearing tax debt. The IRS will analyze each offer on a case-by-case basis, considering the petitioner’s ability to pay off the complete debt, how much income is earned in an average month, and necessary living expenses. The procedure first begins with an application, which cannot be submitted if any filing and payment requirements are currently not met. The offer package you present must also be paired with a Form 433-A and Form 656.
Key points of interest to consider are:
- Nonrefundable fees and payments count towards tax liability
- Filing a Notice of Federal Tax Lien could be necessary
- Secondary collection processes are halted
- Extension granted for collections and legal assessment
- IRS has two years to decide, or else decision defaults in your favor
If your offer in compromise is accepted by the IRS, you will need to choose what sort of payment option you would like to use: lump sum cash or period payment. In a lump sum cash solution, you are expected to pay 20% of the offer amount upfront and the remaining 80% in five or less subsequent payments; depending on your tax situation, you may be expected to make only one subsequent payment a year. For period payments, you pay an initial payment amount followed by monthly payments until the IRS responds to your compromise offer.
Regain Your Footing with Our Tax Law Professionals
It is important for you to begin looking for solutions to your tax debt sooner than later. Our debt relief attorneys in Glendale earnestly want to see you standing on solid ground again, having found a way through the stress and pressure of tax debt. We can deliver personalized attention to your case paired by compassion and top-tier legal knowledge.
Contact us today to begin your free online consultation.