YOUR OPTIONS

We’ll prepare several proposals to get you the tax debt help you need and to resolve your outstanding tax debt.

Offer in Compromise (“OIC”) :  If a taxpayer does not have the means to pay his tax debt within the foreseeable future, he may be allowed to pay as much money to the IRS as he can in a reasonable amount of time (usually between 5 and 24 months). In return, the IRS will write off the remainder of the tax debt. Negotiating an OIC is a long and complicated process, because the IRS will likely not accept an OIC if they believe the tax debt can be paid in full through some other form of payment agreement. When determining if an OIC will succeed, we closely analyze the client's income, expenses, and assets in order to determine how much he must offer the IRS in the compromise.

Installment Agreement (“IA”) :  Installment agreements allow the taxpayer to pay the IRS in smaller, more reasonable monthly payments, rather than paying the full tax debt amount all at once. There are a number of different types of installment agreements, each with different terms and requirements.

Streamline Installment Agreement (“SIA”): A streamlined installment agreement is based partly on the size of the tax debt. To qualify, the taxpayer's assessed tax (including interest and penalties) must be less than $25,000, and he must adhere to a monthly payment plan ensuring that the entire tax debt will be paid off within 60 months (5 years). This agreement is referred to as "streamlined" because it does not require the disclosure of any financial information or documents.

Conditional Expense IA.: A conditional expense is one that is not considered a necessary living expense, such as a credit card bill or a car payment. Conditional expenses may be allowed if the taxpayer can prove that he will be able to make all payments for those expenses, in addition to paying the tax debt and all accruals within a 5-year period. Taxpayers will need to present financial statements that prove the payments will be met.

Stair-Step IA: This installment agreement involves a set of tiered payments. The taxpayer agrees to make monthly payments at a certain amount for 12 months. After the 12 month period, the taxpayer then agrees to make a larger payment for the next 48 months. With this type of agreement, the taxpayer will pay the tax debt in its entirety within 60 months.

The Traditional Installment Agreement : In this type of agreement, the taxpayer pays as much of the debt as he can for the duration of the debt, resulting in a full payment of the tax debt. The amount is determined by the taxpayer's financial information and documentation.

Partial Pay Installment Agreement (“PPIA”) : This agreement allows the taxpayer to pay his IRS tax debt over a period of time (not in full). The taxpayer must provide full financial disclosure, and the IRS accepts this monthly payment amount for a period of 2 years, at which time the taxpayer's ability to pay may be reassessed and an amended monthly payment is made for 2 more years. The agreement continues in this way until the Statue of Collection expires and the remainder of the debt is forgiven.

Currently-Non-Collectible (“CNC”) : If you are declared "not collectible," the IRS must cease its collection efforts against you. This does not mean you will never have to pay the IRS; this is a temporary measure, and the IRS will check in periodically to see if your financial situation has changed in a way that makes it possible for you to pay your tax debt. If your income remains the same for the duration of the Collection Statute (and as long as you remain compliant), you can remain on uncollectible status until the statute of limitations expires and you are no longer legally required to pay the debt.

Penalty Abatement (PA): In a penalty abatement proposal, we are basically asking the IRS to remove some of the penalties you received by failing to pay your taxes on time. In this scenario, our attorneys must show that you had a legitimate reason (in the eyes of the IRS) for falling behind on your tax payments, and that you are doing your part to try and resolve the debt on your own. It is important that these two points are established: that there was reasonable cause for your failure to file or pay your taxes, and that you have been prudent in trying to resolve the debt.