The Internal Revenue Service has been given the authority by the federal government to collect federal taxes and if necessary to negotiate tax settlements with taxpayers. The IRS will use a variety of debt collection tactics to force taxpayers to pay their tax debt including: bank account levies, wage garnishments and repossession of personal property.

Tax settlement options are available for Colorado taxpayers to settle tax debt for a fraction of what is owed. The federal government may be willing to negotiate a tax settlement offer if it is in their best interest and cost less than trying to recover the full amount of the tax liability.

There are a variety of tax settlement options including: Offer In Compromise, Installment Plan, Penalty Abatement, Partial Payment Installment Agreement or Currently Not Collectible, which you may want to consider to settle IRS Tax debt. Tax professionals such as enrolled agents, tax accountants and tax attorneys all can answer questions regarding tax settlement options.

Offer in Compromise

Offer in Compromise is an Internal Revenue Service (IRS) tax settlement option available for Colorado taxpayers to settle federal tax liability for a fraction of the full amount. By accepting the Offer in Compromise, the IRS is putting the taxpayer in a more favorable position to meet all future tax obligations.

Not all OIC offers will be accepted, in fact, the Internal Revenue Service currently accepts approximately 20% of the offer and only if the taxpayer meets certain criteria. For your Offer in Compromise to be considered, it must meet one of the following conditions:

• Doubt as to Liability – The amount of the Colorado taxpayer’s debt must be in question. This condition is not often met.
• Doubt as to Collectibility- The amount of the Colorado’s debt is not in question, but the Internal Revenue Service must believe it is unlikely they will collect the full amount of the tax debt.
• Effective Tax Administration-  Under certain conditions the Internal Revenue Service will agree that collection of the tax debt would cause “economic hardship which is unfair and inequitable” for the taxpayer. This condition exists most frequently for the elderly and disabled.

Colorado taxpayers considering Offer in Compromise must complete the following tasks:

• Pay all federal taxes on or by the deadline for the next five years.
• Meet the requirements of the Offer in Compromise as outlined in the offer
• File all tax returns on or before the deadline
• Agree all future refunds will be used to pay federal tax liability

Installment Agreements for Colorado Taxpayers

One of the most common tax settlement options is the installment agreement. The Internal Revenue Service has developed this tax settlement plan to allow Colorado taxpayers to pay back taxes in monthly installments. The details of the plan will vary depending on the amount of taxes owed. Colorado taxpayers who owe less than $10,000 (not including taxes and penalties) may be able to apply for the guaranteed installment plan which will require the sum be paid in 3 years. Colorado taxpayers who owe $25,000 or less may apply for a streamlined installment plan which requires all payments be made in five years. Most tax professional recommend taxpayers considering an installment agreement for tax debt of $25,000 or more should consultant a tax attorney or tax accountant

An installment plan will not stop penalties and interest from accruing during the installment period. It will always be less expensive to repay tax liability in total if possible.

Partial Payment Installment Agreement

Another type of tax settlement option available for Colorado taxpayers is the Partial Payment Installment Agreement (PPIA). The Partial Payment Installment Agreement is similar to the installment plan and will allow the Colorado taxpayer to pay tax liability in monthly installments but will allow partial instead of full payment.

The Internal Revenue Service will request detailed financial information and will conduct a review every two years to determine if the Partial Payment Installment Agreement can be cancelled or if increased payments can be made. Partial Payment Installment Agreement may be simpler for some Colorado taxpayers than Offer in Compromise.

Currently Not Collectible

Given the current economic hardships of many individuals and families, it may be impossible for certain Colorado taxpayers to pay their Internal Revenue Service debt. In certain cases, the Internal Revenue Service will decide federal tax debt is not collectible. If your tax liability is labeled currently not collectible, the Internal Revenue Service will cease their aggressive collection efforts. One benefit of the currently not collectible status is it may give you and your family some breathing room to regain your financial footing. Unfortunately, the tax debt will not disappear and all penalties and interest will continue to accrue.

Penalty Abatement

The Internal Revenue Service can impose penalties on Colorado taxpayers for a variety of reasons including: refusing to pay federal tax liability, filing fraudulent federal tax returns, requesting a fraudulent tax refund, providing inaccurate data on the federal tax form.

The Internal Revenue Service may be willing under certain conditions, to dismiss certain penalties through penalty abatement. Certain penalties may not be eligible for abatement. Colorado taxpayers should consult with a professional taxpayer for information about penalty abatement.

Should I use a Tax Settlement Option?

Colorado taxpayers have a wide variety of tax settlement options available which can help eliminate the fear and uncertainty of owing the federal government federal taxes. Applying for a tax settlement may help taxpayers avoid wage garnishments, bank account levies or bankruptcy. Contact a tax professional today for more information.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

Internal Revenue Service Tax Settlement Options

The Internal Revenue Service is part of the Department of Treasury and they are given authority by the federal government to collect taxes. The IRS has several ways to accomplish this task including:

• Freezing the money in a Florida taxpayer’s accounts
• Repossessing business and personal assets
• Garnishing wages
• Imprisonment

Florida taxpayer’s who owe IRS taxes and who are facing IRS debt collectors may be able to stop the IRS from their aggressive tactics by settling their tax debt with one of the IRS tax settlement options. The IRS may be willing to negotiate a tax settlement to help Florida taxpayers pay their IRS debt and help reposition them financially to meet their future tax obligations.

Florida taxpayers who need information about IRS tax settlement options can contact a tax professional such as an enrolled agent, certified tax accountant or tax attorney. Tax professionals can provide information about IRS tax settlement options which are available for Florida taxpayers.

Offer in Compromise

Offer in Compromise is one of the most popular methods used by taxpayers to settle IRS tax debt. Florida residents who apply for an Offer in Compromise (OIC) can make an “offer” which is accepted or denied by the IRS. If the IRS accepts the OIC offer, this offer is considered a compromise and will settle the Florida taxpayer’s debt. Many times the OIC will allow a taxpayer to pay less than the full amount owed.

Not all Offer in Compromise offers are accepted, in fact, the IRS currently rejects up to 80% of all first time offers. The IRS may be willing to work with the Florida taxpayer to continue OIC negotiations to come to an acceptable offer for the government and the taxpayer.

Offer in Compromise may no be the best option for all Florida taxpayers. OIC can be time consuming and expensive. Detailed financial data is also given to the IRS which may be used if the OIC is rejected to continue aggressive debt collection. All Florida taxpayers who are considering an OIC should consult a tax professional.

Qualifying for Offer in Compromise

Not all Florida Residents will qualify for an Offer in Compromise. To qualify for an OIC Florida residents will need to meet one of the following conditions:

• Doubt as to Liability- Florida taxpayers who have been assessed the incorrect amount of tax liability may be eligible for Offer in Compromise. This condition is not frequently met.
• Doubt as to Collectibility- Under certain circumstances the IRS may doubt their ability to collect a tax debt or the cost to collect may also be too high. If this condition is met, the IRS may be willing to accept an Offer in Compromise. The amount of tax debt is not in question, only the ability of the IRS to collect the tax debt.
• Effective Tax Administration- Florida residents who are unable to pay their tax debt because payment of the debt may cause “economic hardship which is unfair and inequitable,” may qualify for an Offer in Compromise. The IRS will use this condition mainly for the handicapped and the elderly.

The Offer in Compromise will not be granted unless the following conditions are also met:

• Florida taxpayers must pay all of their future tax obligations on time for the next 5 years
• The Offer in Compromise requirements must be met
• Florida taxpayers must submit their tax returns before the federal tax deadline

Installment Agreement

The most popular method used to pay IRS tax debt is the installment agreement or IA. Installment agreements allow a Florida taxpayer to pay the full amount of tax debt in small manageable monthly payments. For Florida taxpayers who owe $25,000 or less, the IRS generally will grant an installment agreement which allows repayment of tax debt over 60 months. Florida taxpayers who owe more than $25,000 should contact a tax professional who can help them negotiate an installment plan with the IRS. Taxpayers can save money by paying the full amount of IRS tax debt as soon as possible to minimize the amount of interest and penalties.

The IRS can revoke an installment agreement for:

• Failure to file federal tax returns or failure to pay tax obligations after the IA was accepted
• Failure to make tax payments- An installment agreement will be revoked if a Florida taxpayer does not make the full payment on time. The IRS may give the taxpayer 30-60 days before the IA is revoked for the first violation.
• A Florida taxpayer’s financial condition drastically changes. The IRS may review your financial situation every two years.
• A Florida taxpayer gave the IRS incorrect or false information in the course of the installment agreement negotiation process.

Florida taxpayers who are considering an installment plan must meet the following requirements:

• Florida workers who are self-employed must make quarterly IRS tax payments and estimates.
• Florida taxpayers must complete all past tax returns for all past tax liability. This tax liability (not covered under the installment agreement) must also be paid
• Tax debt must be paid for the 5 years before the tax liability which can not be paid
• Florida taxpayers can not have made another installment plan agreement with the IRS with in the last five years.

Partial Payment Installment Agreement

Florida taxpayers who do not want to file an Offer Compromise or who can not afford to make monthly payments for the full amount of tax debt may qualify for a partial payment installment agreement (PPIA). Under the PPIA the Florida taxpayer makes monthly tax payments but the payments do not pay off the full IRS tax debt. If the IRS accepts the partial payment installment agreement, the debt which is not paid is forgiven.

PPIA can be less time consuming and expensive than Offer in Compromise and it will stop all IRS debt collection against the taxpayer. Unfortunately, interest and penalties will continue to accrue. It is always less expensive to pay tax debt in one lump sum. Partial payment installment agreements are reviewed every 2 years and if the Florida taxpayer’s financial situation has improved, the IRS may terminate or modify the terms of the PPIA.

Currently Not Collectible

If the IRS determines a Florida taxpayer’s tax debt is not collectible it means they have decided the taxpayer does not have the ability to pay their taxes. If the IRS makes this determination they will stop all collection activities including wage garnishments and tax levies. The Internal Revenue Service will also send the Florida taxpayer written notification each year about the amount of tax owed. This statement is not considered a bill. If the tax debt is in the currently not collectible status for 10 years and the IRS can not collect the tax debt, the statute of limitations will expire and the tax debt will be forgiven.

Penalty Abatement

Penalties may be assessed against a Florida taxpayer for failure to file their IRS tax return, falsifying tax information, or requesting an unsubstantiated tax refund. Penalty abatement is the forgiveness of IRS assessed penalties which have been added to a Florida taxpayer’s outstanding tax debt. Under certain circumstances, the IRS will agree to remove these penalties if the taxpayer can prove they have a willingness to pay their debt and they have a good reason for requesting penalty abatement. Good reasons could include a serious physical health condition, a hardship which did not allow the taxpayer to file their taxes, personal duress, disaster, or bad advice from a tax professional.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

The Internal Revenue Service (IRS) has been given the authority by the United States federal government to collect federal taxes which are used to fund the activities of the government. If taxpayers fail to pay taxes the IRS can: garnish wages, repossess personal or business property or place levies on taxpayer’s bank accounts.

Minnesota taxpayers who owe IRS back taxes may be able to stop the IRS collection efforts by using one of the IRS tax settlement options to repay or “settle” their federal tax debt. The Internal Revenue Service may be willing to negotiate with Minnesota taxpayers if negotiations will enable taxpayers to pay their future federal tax debts.

Any Minnesota taxpayer who is considering an IRS tax settlement option should contact a tax professional such as an enrolled tax agent, certified public account or tax attorney who can provide details about available options for Minnesota taxpayers.

Offer in Compromise

One of the most popular IRS tax settlement options is Offer in Compromise or OIC. Offer in Compromise allows Minnesota taxpayers to make an “offer” or payment they agree to pay for their IRS back taxes. If the IRS accepts the settlement offer it is considered a “compromise” and the amount outlined in the OIC agreement, once paid, will settle the taxpayer’s debt. In certain cases, the Internal Revenue Service may be willing to accept less than the total amount owed.

The Internal Revenue Service accepts approximately 25% of the initial OIC offers, but may be willing to work with Minnesota taxpayers to negotiate an agreeable settlement offer. Offer in Compromise can be expensive, time consuming and may require Minnesota taxpayers to send large amounts of financial data to the IRS. If the OIC is denied, the IRS may use the detailed information to continue their collection efforts.

Qualifying for Offer in Compromise

Not all Minnesota taxpayers will qualify for an Offer in Compromise. To qualify for an Offer in Compromise a Minnesota taxpayer will need to meet one of the following conditions:

• Doubt as to Liability- In some circumstances there may a question about the accuracy of the tax liability assessed against a Minnesota taxpayer. If the Internal Revenue Service agrees or determines there is some validity to the taxpayer’s claim, they may accept an Offer in Compromise. This condition is not frequently met.
• Doubt as to Collectibility- Under this condition the amount of tax debt is not in question, only the Internal Revenues Service’s ability to collect the outstanding tax debt. The IRS may also determine the cost to collect the IRS tax debt is too high and accept an OIC.
• Effective Tax Administration- Minnesota taxpayers who can not repay their IRS debt because making the payment would cause an “economic hardship which is unfair and inequitable” may be able to qualify for an OIC. The Internal Revenue Service mainly grants an OIC under this condition to the elderly and the handicapped.

Minnesota taxpayers applying for an Offer in Compromise must also complete the following:

• Minnesota taxpayers must pay all of their future IRS taxes before or by the federal tax deadline for the next 5 years
• Minnesota residents must meet all of the Offer in Compromise requirements
• Minnesota taxpayers must submit their federal tax returns before the federal tax deadline

Installment Agreement

Installment agreements are the most popular method taxpayers use to repay tax debt. An installment agreement or IA allows Minnesota taxpayers to pay the total amount of the tax debt in monthly installments. Minnesota residents who owe less than $25,000 can usually qualify for an IA to pay their IRS tax debt over a sixty month time period. Minnesota taxpayers who owe more than $25,000 may want to talk to a tax professional who has experience negotiating with the IRS. It is always less expensive to pay IRS tax debt immediately to avoid penalties and interest.

The Internal Revenue Service can revoke an installment agreement for:

• Failing to meet the requirement of the IA. This can include not paying the monthly tax payments or not filing IRS tax returns.
• Failing to make the full payment amount. The IRS may give Minnesota taxpayers a grace period of 30-60 days for the first violation before revoking the IA.
• If the Minnesota taxpayer’s financial condition improves the IRS may revoke the installment agreement. A review of the IA will be done every 2 years by the Internal Revenue Service.
• Any Minnesota taxpayer who provides falsified or inaccurate tax data during the installment agreement application process may have their IA revoked.

Minnesota taxpayers who are considering an installment plan must meet the following requirements:

• All Minnesota taxpayers who are self-employed must file quarterly tax returns and make quarterly estimated tax payments.
• Minnesota taxpayers must ensure all tax returns have been filed.
• Minnesota taxpayers must pay the tax debt for the 5 years before the tax liability which can not be paid.
• Minnesota taxpayers can not have made another installment agreement with the Internal Revenue Service with in the last 5 years.

Partial Payment Installment Agreement

Minnesota taxpayers who can not pay all of their taxes and who do not want an Offer in Compromise, may be able to make partial payments under a partial payment installment agreement or PPIA. PPIA allows Minnesota taxpayers to make monthly IRS tax payments, but unlike the installment agreement, the full amount of the debt is not paid. If the Internal Revenue Service agrees to the PPIA, the IRS debt which is not paid will be forgiven.

The PPIA can be less expensive and less time consuming to implement than an Offer in Compromise. One benefit of the PPIA is that it will stop the collection efforts of the IRS, but the downside is the penalties and interest will continue to accumulate. The Internal Revenue Service will review the PPIA every two years and may increase the amount of payments required. If the Minnesota taxpayer’s financial situation improves the PPIA may be terminated. It is always less expensive to pay the full amount of IRS tax debt in one lump sum.

Currently Not Collectible

Under certain conditions, Minnesota taxpayers may not be able to pay their tax debt. If the IRS agrees, they may determine the tax debt is currently not collectible. Currently not collectible status will stop all IRS collection activities including wage garnishments and IRS tax levies. If a Minnesota taxpayer’s IRS tax debt is considered currently not collectible, the IRS will send a notice each year outlining the full amount of tax debt owed. If the IRS considers the tax debt currently not collectible for over ten years and does not attempt to collect the tax debt, the statute of limitations will expire and the IRS tax debt will be forgiven.

Penalty Abatement

Minnesota taxpayers may be assessed penalties if they fail to file their Internal Revenue Service tax returns, request a false refund or report incorrect tax information. The Internal Revenue Service may be willing under certain conditions, to abate or reduce the penalties owed. The IRS will only remove the penalties with good reason. Reasons may include: poor physical health, personal duress, disaster, or poor advice from a tax professional.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

Ohio taxpayers who have outstanding Internal Revenue Service (IRS) tax debt may be able to settle their debt by using one of the IRS tax settlement options. The United States federal government has given the Internal Revenue Service the legal authority to collect and settle tax debt. With this power, the IRS has a variety of aggressive debt collection tactics such as wage garnishments, bank account levies and repossession which it can use to collect taxes.

Ohio residents may be able to use an IRS tax settlement option to negotiate a settlement with the IRS. The IRS is willing in many cases to negotiate a settlement for federal tax debt in hopes that a settlement will allow the taxpayer to meet all future tax obligations. In certain cases, the negotiated amount may be a fraction of the full tax debt.

Ohio residents who are considering an IRS tax settlement may want to consult with a tax professional such as a certified public accountant, tax attorney, or enrolled agent. There are a variety of tax settlement programs available and a tax professional can review the taxpayer’s financial situation to identify which program may be best.

Installment Agreements for Ohio Taxpayers

Another common IRS tax settlement option is the installment agreement which allows taxpayers to repay debt with a monthly installment payment. Installment agreements will vary depending on the amount of debt an Ohio taxpayer has to settle. Ohio residents who owe $10,000 or less excluding penalties and interest, can use a guaranteed installment agreement which requires the sum be paid with in three years. Ohio taxpayers who have IRS tax debt of less than $25,000 can use a streamlined plan which will require the tax debt to be paid in five years. Ohio taxpayers who owe more than $25,000 should discuss their payment options with a tax professional.

The Internal Revenue Service will continue to charge penalties and interest for the duration of the installment agreement. It is always more cost effective to pay all federal tax debt as soon as possible.

Offer in Compromise

Offer in Compromise (OIC) is one of the Internal Revenue Services most popular tax settlement options. Offer in Compromise allows an Ohio taxpayer to make an “offer” to the IRS to settle tax debt. This offer is considered a compromise and may be substantially less than the full tax debt owed. If the IRS accepts the taxpayer’s offer, the tax debt which is outlined in the Offer in Compromise is considered settled.

The Internal Revenue Service currently accepts approximately 25% of the OIC offers at the initial application stage, more offers are accepted on appeal. Ohio taxpayers who are considering Offer in Compromise must meet one of the following criteria:

• Doubt as to Liability – If the Internal Revenue Service believes there is a doubt in the accuracy of the amount of tax debt an Ohio taxpayer has been assessed, they may be willing to accept an Offer in Compromise. This condition is not often met.
• Doubt as to Collectibility- The IRS may be willing to accept an Offer in Compromise if they believe they will not be able to collect tax debt owed from an Ohio taxpayer. This condition differs from doubt as to liability because only the ability to collect is in question, not the amount of IRS debt owed.
• Effective Tax Administration- Certain Ohio residents may be able to prove that paying their federal tax debt will result in an “economic hardship which is unfair and inequitable”. If the Internal Revenue service agrees they may accept the taxpayer’s Offer in Compromise. This is most often used for the handicapped and elderly.

Ohio residents must also meet the following requirements:

• Ohio residents must pay all of their federal tax debt on or before the federal tax deadline for the next five years
• All the Offer in Compromise requirements must be completed as outlined
• Ohio tax residents must file all personal tax returns on or before the federal tax deadline
• The IRS will use all future refunds to pay the federal tax liability

Partial Payment Installment Agreement

Partial payment installment agreements (PPIA) can be used by Ohio taxpayers who can not make monthly payments for the full of amount of tax debt. The Internal Revenue Service will review the partial payment installment agreement every two years to determine if the Ohio taxpayer could pay more or if the PPIA could be terminated. Interest and penalties will continue to accumulate under a PPIA. It will always be less expensive to pay all federal tax debt in one lump sum payment.

Currently Not Collectible

Certain Ohio residents may not be able to make federal tax payments due to a financial crisis or the current economic climate. In certain cases, the IRS will determine that tax debt is currently not collectible. The IRS will stop all debt collection efforts for Ohio taxpayers who have debt considered currently not collectible, but the interest and penalties will continue to accrue and the tax debt will not disappear.

Penalty Abatement

Ohio residents who fail to file tax returns, file fraudulent returns, or request a fraudulent tax refund may be assessed penalties by the Internal Revenue Service. Under certain conditions, the Internal Revenue Service may be willing to dismiss or abate the penalties. Ohio taxpayers with excessive penalties may want to consult a tax professional for help in negotiating penalty abatements.

Should I use a Tax Settlement Option?

Ohio taxpayers may use a variety of tax settlement options to settle their IRS tax debt. Tax settlement agreements may also stop the aggressive collection tactics of the IRS and allow the taxpayer to eliminate some of the stress associated with owing the federal government money. Contact a tax professional for more information.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

The Internal Revenue Service has developed a series of programs which may help California taxpayers negotiate a reduced payment to settle outstanding IRS tax debt. The goal of the Internal Revenue Service and tax settlement plans is to help California taxpayers meet their tax obligations so they can pay all future tax liability.

Before applying for a tax settlement plan, it is important to contact a tax professional. Tax professionals can help file all past tax returns and outline which tax settlement plan may be best for you. Do not let the IRS harass you with threats of wage garnishments, tax levies or repossession of your personal property.

Offer in Compromise in California

Offer in Compromise is tax settlement option allowed by the IRS to settle tax debt by drastically lowering the taxpayer’s tax bill. The Internal Revenue Service will not accept all OIC offers the first time the offer is made, but the Offer in Compromise offer may be accepted on appeal.

Offer in Compromise is time consuming and the IRS will request detailed financial information about the taxpayer which the IRS can then use to their advantage if the OIC is denied.

To qualify for an Offer in Compromise you must meet one of the following conditions:

• Effective Tax Administration- Some California residents will have extenuating circumstances which will make it impossible to pay their federal tax obligations with out causing “economic hardship which is unfair and inequitable”. This option is used most frequently for the elderly and the handicapped.
• Doubt as to Collectibility -  California taxpayers may be eligible for OIC if they convince the IRS that the tax debt is not collectible or if continuing the collection for the full amount of tax liability will end cost the federal government more than accepting the Offer in Compromise. Under this condition the amount of tax owed is not in question.
• Doubt as to Liability- The IRS may grant an Offer in Compromise if the amount of tax debt owed is in question. This condition is not frequently met.

If the taxpayer meets one of the conditions listed above they will also need to complete the following tasks to qualify for Offer in Compromise:

• The OIC offer must be fulfilled as outlined in the accepted offer.
• All federal taxes must be paid by the deadline for the next 5 years.
• Tax returns must be completed on or by the tax extension deadline.
• Refunds will be applied toward the taxpayer’s outstanding IRS tax debt.

Installment Agreement

California taxpayers frequently use installment plans to repay their federal tax debt. Installment plans allow the taxpayer to pay their federal tax debt with a monthly payment plan. The type of plan and the method of repayment will vary based on the amount of money owed. If the taxpayer owes $10,000 or less, not including penalties and taxes, they may be able to qualify for a guaranteed installment plan. The guaranteed installment plan will require that the entire sum be repaid in three years.

For tax debt of less than $25,000 a streamlined installment agreement can be used and payment will have to be made with in five years. A tax professional should be consulted for all tax debt greater than $25,000.

If you are considering an installment agreement you must:

• Complete quarterly tax estimates if you are self-employed
• File all past federal tax returns
• Pay all prior tax debt for the five years before the current federal tax liability which can not be paid
• Have no other installment plan agreements with in the last five years

Partial Payment Installment Agreement

The Internal Revenue Service has developed the Partial Payment Installment Agreement for individuals who can only pay partial payments for tax liability. The Partial Payment Installment Agreement or PPIA may be one way to stop the Internal Revenue Service collection actions. Under the PPIA, the Internal Revenue Service will perform a review every two years to determine if the taxpayer can pay higher payments or if the PPIA can be terminated.

Currently Not Collectible

Currently not collectible is a tax settlement option for California taxpayers who can not afford a Partial Payment Installment Agreement or an Installment Agreement. The IRS will only declare a taxpayer’s debt currently not collectible if certain criteria are met. The Internal Revenue Service will stop all collection efforts and release levies but the tax debt will not be dissolved and the penalties and interest will continue to accrue.

Penalty Abatement

Penalties will be assessed for a variety of reasons including failing to pay the tax liability by the due date, not reporting tax debt accurately, not filing a tax return or falsely requesting a refund. Penalties can also be charged to taxpayers who either knowingly or accidently falsify financial information on their federal tax returns.

California taxpayers may request their penalties be lowered or eliminated through penalty abatement. The IRS will require a valid reason to dismiss penalties. Certain penalties may not be dismissed.

Do I Need Tax Professional?

Tax professionals can offer advice for a wide array of tax settlement options. Tax professionals can also help with filing tax forms, minimizing tax liability, and evaluating options for avoiding personal bankruptcy. Do not let the Internal Revenue Service harass you through their aggressive collection tactics. A tax professional can help taxpayers avoid wage garnishment, tax levies and repossessions by evaluating which tax settlement option should be used to settle tax debt.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

Internal Revenue Service Tax Settlement Options

New York taxpayers who owe the Internal Revenue Service back taxes may be able to settle the tax liability for a fraction of the total amount. The Internal Revenue Service may be willing to negotiate a reduced payment for back taxes to ensure New York taxpayers will meet all of their future tax obligations.

New York taxpayers who are considering using a tax settlement option to settle IRS tax debt may want to contact a tax professional such as an enrolled tax agent, tax accountant, or tax attorney who can provide a wide variety of tax services for New York taxpayers.

Offer in Compromise

Offer in Compromise (OIC) is one type of tax settlement option offered by the Internal Revenue Service to settle or “compromise” past tax debt for less than the total amount of tax debt owed. The Internal Revenue Service does not legally have to accept any OIC offers, in fact, the IRS currently accepts 20-25% of the Offer in Compromise applications at the initial level. Offer in Compromise offers can be renegotiated and are frequently approved on appeal.

Offer in Compromise can be expensive and time consuming. New York taxpayers who make an Offer in Compromise will be required to provide detailed information to the Internal Revenue Service which can be used to continue aggressive collection efforts if the Offer in Compromise is denied. Tax professionals can help New York taxpayers who are considering Offer in Compromise at the application and appeal levels.

Qualifying for Offer in Compromise

New York taxpayers who are considering Offer in Compromise must meet one of the following requirements:

• Doubt as to Liability- New York taxpayers may qualify for an Offer in Compromise if there is doubt as to the amount of tax liability owed. This option is not common.
• Doubt as to Collectibility- The Internal Revenue Service may be willing to accept the Offer in Compromise if there is doubt as to the taxpayer’s ability to pay the IRS tax debt. This condition differs to the first condition because the amount of tax liability is not in question, only the ability to collect.
• Effective Tax Administration- New York taxpayers may qualify for an Offer in Compromise if the Internal Revenue Service has determined collection of the IRS tax debt would cause “economic hardship which is unfair and inequitable.” The Internal Revenue Service uses this condition most frequently for the elderly and the handicapped.

The Offer in Compromise will not be granted unless the following conditions are also met:

• New York taxpayers must pay all of their future taxes on time for five years
• All the requirements outlined in the Offer in Compromise must be met
• Tax returns must be completed before the tax extension deadline
• The Internal Revenue Service will use all future refunds to pay down outstanding tax debt

Installment Agreement

New York taxpayers also may have the option to repay IRS tax debt using an installment agreement. Installment agreements allow the taxpayer to pay federal tax debt in monthly installments instead of in a lump sum payment. The Internal Revenue Service offers a variety of installment plans and the methods and types will vary depending on the amount of the debt.

For New York taxpayers who owe $10,000 or less, excluding interest and penalties, they may be able to use the guaranteed installment plan and pay the debt with in three years. Taxpayers who owe $25,000 or less may use the streamlined installment plan and pay the tax debt with in five years.

New York taxpayers who owe more than $25,000 should consult with a tax professional to for help to negotiate with the Internal Revenue Service. Interest and penalties will continue to accrue under the installment agreement. It is always less expensive to pay federal tax debt in one lump sum if possible.

New York taxpayers who are considering an installment plan must meet the following requirements:

• Self-employed workers must make quarterly tax payments and estimates.
• Tax returns for all past tax liability must be paid
• Tax returns for past tax debt must be filed and paid for the five years prior to the liability which can not be paid
• Taxpayers can not have made another installment plan agreement with the Internal Revenue Service with in the last 5 years.

Partial Payment Installment Agreement

New York taxpayers who do not want to use an Offer in Compromise or an installment agreement, may be able to settle IRS tax debt through a partial payment installment agreement or PPIA. If the Internal Revenue Service accepts your PPIA, they will stop all collection efforts against you, but interest and penalties will continue to accrue. The Internal Revenue Service will review the PPIA every two years and to determine if more money can be paid or the PPIA plan should be terminated.

Currently Not Collectible

New York taxpayers who have suffered a devastating financial crisis or who do not have the ability to pay their tax liability may ask the Internal Revenue Service to determine their IRS tax debt as currently not collectible. The Internal Revenue Service will stop all enforcement actions against the taxpayer and release bank levies if they make this determination, but the tax debt will not go away and the interest and penalties will continue to accrue on the outstanding tax debt.

Penalty Abatement

New York taxpayers who have failed to report their tax debt, falsified tax refund information, or filed incorrect tax debt may be assessed penalties by the Internal Revenue Service. Not all penalties will be dismissed and the Internal Revenue Service will require a valid reason to dismiss penalties, but under certain conditions, the IRS may agree to penalty abatement.  New York taxpayers who are considering penalty abatement may want to contact a tax professional for help.

Do I Need New York Tax Professional?

Federal Tax debt does not go away and the Internal Revenue Service can be aggressive. New York taxpayers who need help resolving federal debt or who need help completing tax forms, avoiding bankruptcy, reducing business or personal tax liability or who are trying to stop wage garnishments may want to consult a tax professional for help.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

Internal Revenue Service Tax Settlement Options

Texas Taxpayers who have outstanding federal tax debt may be able to settle their tax liability for pennies on the dollar. The IRS may be willing to negotiate a tax debt settlement with you in hopes that you will pay all future tax obligations. It is important if you are considering a tax settlement plan, to contact a Texas Tax Attorney, enrolled tax agent or certified public accountant who can help file past tax returns and answer questions about the best tax settlement option for you and your family.

You do not have to avoid phone calls or refuse to open your mail anymore. Do not let the Internal Revenue Service intimidate you. Contact a Tax professional for help.

Offer in Compromise

If you are a Texas resident and you have IRS tax debt, you may qualify for an Offer in Compromise (OIC). The Internal Revenue Service can settle or compromise your federal tax debt by accepting less than you owe. Not every OIC will be accepted but many offers may eventually be won on appeal.

If you are considering Offer in Compromise to settle your tax debt, contacting an experienced Texas Tax professional who understands the rules and regulations of the Internal Revenue Service can help drastically lower you federal tax bill. Offer in Compromise is a very common tax settlement program, but it is also very complicated and time consuming. Texas Tax professionals have the experience needed to complete the process and help resolve your federal tax debt.

To qualify for Offer in Compromise you must meet one of the following conditions:

• Effective Tax Administration- The Internal Revenue Service may accept your OIC offer if they decide paying your back taxes will cause “economic hardship which is unfair and inequitable”. This condition is hard to meet and most often is granted for the elderly and disabled.
• Doubt as to Collectibility- The IRS will grant OIC under this condition if they conclude they will not be able to collect the federal tax debt. Under this condition there is not question of the accuracy of the federal tax debt.
• Doubt as to Liability- The Internal Revenue Service may grant an OIC if they question the accuracy of the federal tax debt liability you have been assessed.

If the Internal Revenue Service approves the Offer in Compromise application several conditions must be met:

• Taxes must be paid on time for the next five years.
• The Offer in Compromise plan must be completed as outlined.
• All tax returns must be completed on or before the tax extension deadline.
• All tax refunds will be used to pay down your outstanding federal tax debt.

Installment Agreement

The IRS Installment Plan will allow you to break up your federal tax debt and repay it in monthly “installments”. There are a variety of different types of plans you can use, depending on the amount of money you owe. If you owe $10,000 or less, not including taxes and penalties, you may be able to use a guaranteed installment plan agreement. The entire amount will have to be repaid with in three years. If you owe $25,000 or less, the Internal Revenue Service may allow you use a streamlined installment agreement. You will have to complete the payment plan with in five years. If you owe more than $25,000, it is important to contact a Texas Tax Professional who can help negotiate an installment plan with the Internal Revenue Service.

To qualify for an Installment Plan the following qualifications must be met:

• Individuals who are self-employed must pay quarterly tax estimates.
• All tax returns for past federal tax liability must be paid.
• All returns for previous tax debt must be filed and paid for the five years before the current federal tax debt you can not pay.
• Individuals can not have another Installment Plan agreement with in the last five years.

Partial Payment Installment

The IRS has created a new type of Installment Plan which allows partial payments for federal tax liability called the Partial Payment Installment Agreement. The IRS will cease collection actions against you if you are making payments per the Partial Payment Installment Agreement. The IRS will conduct reviews every two years to assess if the terms of the PPIA need to be terminated or if higher payments can be made.

Currently Not Collectible

Certain Texas taxpayers may not be able to make partial payments for federal tax debt and may not qualify for any other type of IRS tax settlement plan. Under certain circumstances the Internal Revenue Service may declare your account as Currently not Collectible. Under this classification, the IRS will halt all enforcement actions and release levies. The debt does not go away and penalties and interest will continue to accrue.

Penalty Abatement

Failure to pay your taxes by the due date can result in penalties. Penalties may also be assessed for under reporting your federal tax debt, failing to file or falsely filing for a refund. Additional fees may be assessed if you misrepresent financial data on your tax return.

Texas taxpayers who are assessed IRS penalties may be able to have them lowered or eliminated by requesting a Penalty Abatement. The IRS will not dismiss all penalties. Taxpayers must have a valid reason to request Penalty Abatement. Experienced Tax Attorneys and tax professionals can offer advice for the Penalty Abatement request.

Do I Need Texas Tax Professional?

Federal Tax debt is not going to go away. The Internal Revenue Service will continue to try and collect all past tax debt and they can be extremely aggressive in their collection efforts. Unlike other debt collection agencies, they will have the ability to garnish your wages, seize your assets and levy your bank accounts.

Texas Tax Professional are experienced at solving a variety of tax issues including:

• Completing past due tax forms
• Helping you avoid bankruptcy
• Analyzing ways to reduce your tax liability
• Tax Settlement options (Partial Payment plans, Penalty Abatements, Installment Agreements, Offer in Compromise, Currently not Collectible)

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

When searching for tax compliance advice, do you know who you can trust? Recently a certified public accountant (CPA) in the state of New York was convicted for stealing more than $300,000 in tax refunds, money that should have been received by his clients. Despite being licensed by the state, there are some CPAs you cannot trust. So how do you identify a CPA who is trustworthy?

Whether you need tax advice or help in negotiating a settlement with the IRS, don’t merely think of your self as a taxpayer who needs help. Take the approach of a hiring manager who is trying to fill a key position. Hiring managers check a potential employee’s background, contact references, investigate their skills and determine if the applicant’s salary matches their budget.

You should follow these same steps when selecting a CPA. Learn how long the CPA has been licensed in your state. Ask how often they’ve worked on your particular tax issue with other clients, and follow up on their references. If they’ve worked in other states, ask them to provide contact information that will confirm the CPA once held a license to practice in that state. An honest CPA will have nothing to hide. Membership in professional organizations that emphasize ethics in CPA can also be a good indicator.

At taxlawhome.com we carefully investigate tax professionals before including them in our network. We encourage you to investigate them as well, as your tax issues deserve to be handled by reliable resources.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

Tennessee taxpayers who have unpaid federal tax debt may have several options to pay their back taxes and settle their debt for a fraction of the total amount. The United States government has given the Internal Revenue Service the responsibility to collect federal taxes which are used to fund the government. The Internal Revenue Service (IRS) in an attempt to help taxpayers pay IRS tax debt and meet all future tax obligations has developed several type of IRS tax settlement options.

Tennessee taxpayers who are interested in finding information about these tax settlement options should contact a tax professional who can help answer questions. Tax professionals can also help file tax forms, analyze ways to reduce a taxpayer’s liability and help Tennessee taxpayers avoid bankruptcy. Internal Revenue Service tax settlement options vary and a tax professional such as an enrolled agent, certified public accountant or tax attorney can help Tennessee taxpayers determine which one is right for them.

Offer in Compromise in Tennessee

Offer in Compromise (OIC) is one of the popular types of tax settlement options offered by the Internal Revenue Service. Tennessee taxpayers can make an “offer” to the IRS and if the Internal Revenue Service accepts the offer it is considered a compromise and the back tax debt will be settled. The IRS has the authority to accept or deny all OIC offers. Currently the rate of acceptance is approximate 25% at the initial level, but more may be accepted after the OIC appeals process.

Tennessee taxpayers will not have the authority to take legal action against the Internal Revenue Service for refusing to consider an OIC offer and if the Internal Revenue Service denies the Offer in Compromise offer they will have detailed financial information to continue continuing all IRS back tax debt.

Tennessee taxpayers who are considering an Offer in Compromise must meet one of the following criteria:

1. Doubt as to Liability- Tennessee taxpayers who doubt the amount of IRS tax debt they have been assessed may be offered an Offer in Compromise. The IRS will only grant the OIC request if there is validity to the claim. This condition is not often met.
2. Doubt as to Collectibility- Under certain conditions the Internal Revenue Service will consider certain IRS tax debt as not collectable or determine the cost to collect the IRS debt is excessive. This differs from the first condition because the amount of IRS tax debt is not in question, only the ability of the Internal Revenue Service to collect the federal tax debt.
3. Effective Tax Administration- Tennessee taxpayers who can prove that payment of federal tax debt may cause “an economic hardship which is unfair and inequitable” may be eligible for an Offer in Compromise. This condition is most frequently used for the elderly and handicapped.

In addition to meeting one of the criteria listed above, Tennessee taxpayers will also need to complete the following tasks:

• Complete all the requirements and payments outlined in the Offer in Compromise
• Pay all IRS tax debt for the next five years before or on the federal tax deadline
• File all federal tax returns before or on the federal tax deadline
• The IRS will use all federal tax refunds to pay the taxpayer’s outstanding tax debt.

Installment Agreement

Tennessee taxpayers who do not want to use an Offer in Compromise to settle IRS tax debt may be able to use an installment agreement. Installment agreements will allow a Tennessee taxpayer to pay their debt in monthly installments. The type of installment plan may vary based on the amount of tax debt owed. For Tennessee taxpayers who owe $10,000 in back taxes (excluding penalties and interest) may be able to use a guaranteed installment plan. Under this plan, the outstanding debt must be paid in 3 years. Taxpayers who owe less than $25,000 in tax debt may be able to use a streamlined installment agreement and repay their tax debt in five years. For all Tennessee taxpayers with debt exceeding $25,000 or more, it is a good idea to contact a tax professional who can help negotiate the terms of an installment agreement.

Tennessee residents will also have to complete the following tasks to qualify for an installment agreement:

• All self-employed individuals must file estimated tax statements and make quarterly tax payments
• Tennessee taxpayers must complete all federal tax forms
• All tax debt must be paid for the five years prior to the amount defined in the installment agreement
• Tennessee taxpayers can not have had another installment agreement in the previous five years

Partial Payment Installment Agreement

Tennessee taxpayers who are unable to use an Offer in Compromise or an installment agreement may be able to qualify for a partial payment installment agreement (PPIA). The PPIA was created by the Internal Revenue Service to allow taxpayers to pay their IRS tax debt in partial monthly payments. The partial payment installment agreement will stop all IRS collection actions, but will not stop penalties and interest from accruing.

Tennessee taxpayers who are using a PPIA to repay IRS tax debt will be monitored and reviewed every two years. After the review the Internal Revenue Service may conclude the terms of the PPIA need to be modified and the taxpayer can pay more money or the PPIA can be terminated. It is always less expensive to pay all tax debt as soon as possible in one lump sum payment.

Currently Not Collectible

Given the current economic climate, many Tennessee taxpayers may be unable to pay IRS tax debt with any of the available tax settlement options. If the IRS determines a taxpayer can not pay their tax obligations, they will consider the debt “currently not collectible”. Under this condition, all tax collection efforts by the IRS will cease and the IRS will release levies and stop wage garnishments. Tax debt will not disappear and penalties and interest will continue to accrue.

Penalty Abatement

Tennessee taxpayers may be assessed penalties for a variety of tax infractions including: not paying federal taxes by the tax deadline, not filing a tax return, falsifying tax documents or claiming a false refund. The IRS may be willing however, under certain conditions, to waive or abate these penalties. There will be certain penalties which will not be dismissed.

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

If you live in the state of New Mexico and you owe back taxes, the Internal Revenue Service has several options to negotiate the repayment of your federal tax debt. By contacting a New Mexico Tax Attorney, you can examine which tax settlement option will work best for you.

Do not let the IRS intimidate you. Owing money can be stressful, but you do not have to let the IRS and their aggressive debt collection efforts disrupt your life. Contacting a New Mexico Tax Lawyer can be your best choice to settle your IRS tax debt.

Internal Revenue Tax Settlement Options

In certain cases, the IRS may allow you to settle your tax debt for less than you owe. The IRS always prefers that you pay the full tax debt, but they may allow exceptions if you have an extenuating circumstance. Regardless of the tax settlement you choose, you will have to file all previous unfiled tax returns. A tax attorney can help with this process and also help determine what type of tax settlement option is best for you.

Offer in Compromise

Offer in Compromise is one of the most common tax settlement programs for re-negotiating your federal tax liability. Unfortunately, not all Offer in Compromise applications are accepted. The IRS created the Offer in Compromise or OIC with the goal of helping individuals fulfill all their future tax payments. OIC allows you to make an offer to the Internal Revenue Service for the amount of money you can pay with out creating unreasonable financial hardship for your family. If the IRS accepts your offer, all past tax liability (which the offer covers) is eliminated.

To qualify for the Offer in Compromise program, you must meet certain requirements:

1. All federal taxes must be pain on time for the next five years.
2. You must complete the full payments outlined in the OIC.
3. You must file all your tax returns before or by the tax extension deadline.
4. Your tax refunds will be applied to any federal tax liability you owe.

The IRS will accept the Offer in Compromise application if you can prove:

1)     Doubt as to Liability-  If the amount of tax debt owed is in question, the IRS may agree to review the disputed amount.

2)     Doubt as to Collectibility- The IRS does not believe, given your current financial situation, you will be able to pay your federal tax debt.

3)     Effective Tax Administration- The IRS agrees paying your federal tax debt will create “economic hardship which is unfair and inequitable”. This is most often applied to the disabled and the elderly.

Installment Agreement

New Mexico taxpayers frequently use an Installment Agreement to pay IRS taxes, which will allow the taxpayer to pay their taxes in monthly installments. To qualify for the Installment Agreement all prior tax returns must be filed. The IRS generally accepts this option if the amount owed is less than $25,000. If the amount owed is more than $25,000, it is a good idea to consult with a New Mexico Tax Attorney to negotiate the terms of the plan. Penalties and interest will continue to accrue under this plan. If you can pay your tax debt in full, you will always save money.

Partial Payment Installment

In 2005, the IRS implemented the Partial Payment Installment Agreement (PPIA). New Mexico residents who have federal tax liability can use this new payment option. According to the legislation which was passed, New Mexico residents can agree to partial payment plans or full payment plans to settle outstanding federal tax debt. To qualify, you must provide complete and accurate financial data, including information for assets which could be used to reduce your tax debt. The IRS will review the installment plan every two years and the agreement terms may be updated if your financial circumstances improve.

Currently Not Collectible

In some extenuating circumstances, the IRS may decide tax debt is not collectible. The Internal Revenue Service will decide if collecting the debt will cause a “severe economic hardship”. Currently not Collectible is a temporary plan which may allow you to avoid the IRS debt collection, but you will still owe the back taxes. Penalties and interest will also continue to accrue on the outstanding taxes owed.

Penalty Abatement

New Mexico residents may be able to request a Penalty Abatement to eliminate the penalties associated with over due federal tax liability. The IRS may be willing to remove the penalties if you prove you are not able to pay the debt and you have a valid reason for your request. A New Mexico Tax Attorney can file your cover letter and complete Form 843.

Information such as you name, address, tax period for the request and social security number will have to be provided. Many taxpayers choose to establish their plan of payment before they request the penalty abatement, but a New Mexico Lawyer can answer all of your questions regarding the proper filing of the Penalty Abatement.

Do I Need A New Mexico Tax Attorney?

The Internal Revenue Service is a very aggressive debt collector with a variety of methods at their disposal. The IRS can make your life miserable. They do not forget about debt and they do not stop calling. Some of the debt collection techniques you can expect to encounter if you fail to pay your federal tax liability can include:

• Freezing money in your bank accounts
• Seizing business and personal assets
• Seizing your equipment
• Seizing your personal property
• Garnishing your wages

Tax Attorneys in New Mexico have worked for years to stop the harassing actions of the IRS. Tax Attorneys will be able to review all the tax settlement options available and determine if Offer in Compromise, Installment Agreements, Partial Payment plans or Penalty Abatements are best for you. If you need help with any of the following tasks, contact a New Mexico Tax Lawyer today.

• Stopping the Internal Revenue Service harassment
• Completing the forms for a tax settlement plan
• Reducing the need to file personal bankruptcy
• Reducing or eliminating federal tax liability

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!