Settling Debt with the IRS
If you’re facing debt collection from the IRS, you have options.
The IRS tax code states: “We will accept an Offer of Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonable reflects the collection potential…” (Internal Revenue Code section 7122). An Offer in Compromise provides you the opportunity to pay off all your owed taxes to the government for less than the actual amount, normally for roughly five to 15 percent of the original amount. For an Offer in Compromise, you need the help of an experienced tax advisor in order to figure out the ideal amount to offer for your settlement. The key is to figure out what is the least amount that the IRS will accept in your specific situation before you make an offer. Once your offer is accepted and paid, you will be clear of any outstanding tax debt.
Along with an Offer in Compromise, the IRS also offers installment agreements in order to pay off any outstanding tax debt. An IRS installment agreement allows you to be able to pay back any tax debt overtime and stops any further action from being taken against you, including the power of levy and the seizure of property. This gives you both structure and time to pay off your tax debt and be protected against any negative action. One of the many tax services that we offer at Tim Mukherjee & Associates is the ability to represent you or your legal entity through the installment agreement process to help you get out from under problematic tax debt.
To learn more about your options for paying off your outstanding tax debt, including Offers in Compromise and installment agreements, contact Tim Mukherjee & Associates for a free 30-minute consultation. Call today!