How to File a Successful Offer in Compromise

Offer in Compromise You know you owe Uncle Sam money, and you know you’ll have to pay something, but are you really indebted for that whole huge bill? If you need help with your unpaid taxes and want to get the IRS off your back with a little negotiating room, you may want to consider asking a top Atlanta tax attorney to help you with an Offer in Compromise.

This is the process where a taxpayer who owes a large amount, for example $20,000, seeks to reduce his tax bill by offering to pay a smaller amount, perhaps $5,000, in a lump sum or over a short period of time. Experienced Atlanta tax lawyers like the Gartzman Law Firm know that the IRS may be willing to accept a smaller amount. Even the government knows that “a bird in the hand is worth two in the bush.”

Unfortunately, this isn’t a negotiation. The best IRS tax relief firms in Georgia and tax attorneys know that you get one shot at coming up with the magic number that the IRS will accept, and the government accepts fewer than one in four offers that are put forth by the taxpayers themselves. We want you to get a great deal and we know that offers crafted by savvy tax lawyers have a much higher acceptance rate. That is why it is critical to find an experienced professional who knows the tax players and knows what offers have been accepted and rejected.

The best tax attorneys in Atlanta have some advice to help them submit your Offer in Compromise:
•    File all subsequent tax returns on time and pay them in full.
•    Be courteous to all IRS personnel. Don’t give them any additional reason to say “no.”
•    Be honest and courteous to your tax lawyers and their staff. Honor all advice and deadlines they give you. They can’t win your case if you don’t help them.

This is a battle that is difficult to win on your own. If you don’t want to spend your golden years in the poor house, you’ll need the expertise of someone who does this every day. Help your Atlanta tax lawyer convince the IRS that they should accept your Offer in Compromise so you can write that check and get on with your life.

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What to Do if You Get a Back Tax Notice from the IRS

IRS Back Tax Notice You’ve been meaning to take care of that little back tax problem. You have every intention of getting to it ASAP. You hope that you’ll be able to file an amended return and they’ll never even notice. But when you flip through the mail, your eyes light upon an ominous-looking envelope, and you realize that the Internal Revenue Service has gotten to you first.

As tempting as it may be to run and scream and stick your head in the sand, none of those options will get rid of the IRS. You’re in over your head and the situation has gone from bad to worse. Now you need to make sure that your next steps don’t lead you to prison. There are a few crucial things you must do.

Find an advocate. Understand something. The IRS’s “help line” is not there to help you. They are there to help the IRS squeeze as much money out of the taxpayers as possible. They do not have your best interests at heart, and they are not on your side. You need to hire someone like a tax attorney who is loyal to you, has an intimate working knowledge of today’s tax code and how the IRS operates behind the scenes, and who has a history of taking on the IRS and winning. If you were accused of a crime, would you go to court without an attorney? Of course not. Neither should you risk your entire financial future without legal advice.

Stop the threats. Once you have hired a tax lawyer, you never have to communicate with the IRS again. That’s right, no more teeth-rattling phone conversations or responding to missives in the mail. Your tax attorney becomes your mouthpiece, and a much more effective one than you could ever be. (You’d be amazed at how many people accidentally incriminate themselves to “that nice lady who called from the IRS”.) Your tax lawyer may also be able to call a temporary halt to the IRS’s threats of liens or levies. Hiring a legal representative gives you and your tax attorney breathing room to get your case together and launch a much more effective defense than you ever could on your own.

Negotiate away fees and penalties. The IRS has hundreds of fees and penalties they can slap you with. These extras can bulldoze a medium-sized molehill of a back tax problem into an unrecognizable mountain of debt. Once the IRS realizes that they are playing hardball with a professional tax attorney, they may be more likely to eliminate these add-ons as part of the negotiation process, and to cut the bill down to something that more closely resembles the original debt.

File an appeal. Did you know that you can appeal a levy or lien that has already been placed against you? Do you know how to do this effectively? Your tax lawyer does. He or she can file with the IRS Appeal Division. Certain types of appeals are required to be ruled on within five working days.

Negotiate a payment plan. Once your tax attorney and the IRS have whittled down the amount you owe, you need to decide how to pay it. If you can pay in a lump sum, the government will pressure you to do so. If you have no major assets, but are gainfully employed, they are more likely to agree to a payment plan. They will even deduct the money from your checking account so you don’t have to endure the trauma of writing and sending a check every month. Thoughtful IRS. The downside of a payment plan is that if you break the agreement, they will go back to square one and come after you again.

Consider an Offer in Compromise settlement. You may be able to negotiate your debt with an Offer in Compromise. For example, the IRS might clear your $20,000 debt if you pay them a $5,000 lump sum. This is another way in which your tax lawyer is worth his weight in gold. There are limited opportunities to come up with the right number that the IRS will accept. Working with a tax attorney is the best chance you have at crafting a successful Offer in Compromise.

Be designated Currently Not Collectible. If you are destitute, or if you are chronically ill or otherwise not able to work nor pay taxes, it is possible to get classified by the IRS as Currently Not Collectible. Now, should you ever win the lottery or your income increases significantly. The IRS will come after you with both guns blazing. But if your tax lawyer can prove that you have no assets and no foreseeable hope of acquiring any, they might put your name in Currently Not Collectible status. This could be temporary or permanent depending on your situation over time.

Getting nailed for not paying your back taxes is a serious offense, and can potentially ruin your finances, business, career and credit rating. Fortunately, there is help available. Take a deep breath and acknowledge that this is not a battle you are likely to win without professional guidance. Pick up the phone and call a reputable tax attorney who can help lead you out of the dark and scary back tax forest and into the light of sleeping through the night again.

About Jeffrey S. Gartzman, Atlanta Tax Attorney and Certified Public Accountant
Jeffrey S. Gartzman is an accomplished Atlanta tax attorney and CPA who has been practicing tax law in Atlanta for nearly 30 years. He will help you resolve IRS and state tax problems, find tax relief and settle tax debt. Jeffrey S. Gartzman is a former IRS Taxpayer Education Program instructor. He is also an accredited Personal Financial Specialist with the American Institute of CPAs.

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Tax Relief and the IRS “Fresh Start” Program

IRS Fresh StartFinally recognizing that you cannot squeeze blood from a stone, in early 2011 the Internal Revenue Service offered some tax help and announced sweeping reforms to help taxpayers who were facing particularly hard times and need tax relief. Atlanta tax attorneys and taxpayers are cheering the changes. Ask your tax attorney or CPA about the IRS Fresh Start Program.

According to IRS.gov, these changes include:

  • “Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.” The IRS is raising the limit to keep up with inflation and offer tax help. They will revisit these new criteria after a year or so to measure their effectiveness.
  • “Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.” They are streamlining the process so agents can respond more quickly to tax help requests. An Atlanta tax lawyer can help you get this done.
  • “Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.” If you owe less than $25,000 and have honored your direct debit agreement for a probationary period, the IRS will now consider lifting any liens on your property upon your Atlanta tax attorney’s request for tax relief.
  • “Creating easier access to Installment Agreements for more struggling small businesses.” The tax help cap is being raised from $10,000 to $25,000, allowing more small businesses and Atlanta tax lawyers to participate in streamlined installment agreements, if they can pay within 24 months.
  • “Expanding a streamlined Offer in Compromise program to cover more taxpayers.” The qualifying debt load for tax relief is being doubled to $50,000 and now includes taxpayers with incomes up to $100,000. An Atlanta tax attorney can help you devise an OIC that the IRS will accept.

Make no mistake, you still have to pay. But the IRS is making it a little easier for some people and businesses to do so. An Atlanta tax lawyer can answer any questions you have.

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How a Client Settled $250,000 in IRS Back Taxes for $20K with an Offer In Compromise

Atlanta tax resolution for back taxes with an Offer in CompromiseIf you owe IRS back taxes from unfiled income taxes, sooner or later the IRS will take action to collect. In many cases this means additional tax debt from penalties and interest – on top of IRS liens and levies that can bring your life or your business to a halt. When you work with an Atlanta tax attorney or CPA to get tax relief, your tax lawyer will intervene with the IRS and work to reasonably settle IRS back taxes for you.

“Times were tough, so I didn’t pay my taxes.”

It’s a story I hear frequently these days: Maybe you were making good money or staying in the black with self-employment income before the economy went downhill – along with your job or small business income. You tried to stay afloat by not filing federal income taxes, and now you owe back taxes.

During this recent Recession the IRS significantly increased their efforts to enforce tax collection. Avoiding paying federal income taxes during tough economic times will only result in a staggering IRS tax debt from back taxes.

I provided IRS tax relief services to a client who had accumulated tax debt during the rough economy. With tax help from the Gartzman Law Firm, my client was able to settle almost $250,000 in back taxes for about $20,000 by pursuing an Offer in Compromise with the IRS.

Here’s how your Atlanta tax attorney can help you pursue an Offer in Compromise:

1. Meet with a tax attorney and complete a financial worksheet to paint a complete scenario of your IRS tax problems and owed back taxes.

2. Give your tax attorney Power of Attorney so they can communicate with the IRS on your behalf about your tax debt and specific details in your tax record: unfiled returns, amount the IRS claims you owe, etcetera.

3. Your tax attorney will review your case and present viable financial and legal options to present an Offer in Compromise to the IRS.

4. Work with your tax attorney to complete the filing for an Offer in Compromise. As a tax attorney, I understand what the IRS will be taking into consideration regarding your financial status: income, expenses, assets, liabilities, and personal issues like age, employment, medical, and family status.

5. Submit the Offer in Compromise. On average, the process takes three to four months.

6. You will receive a letter from the IRS about the acceptance status of your Offer in Compromise, and what payment is owed.

During this process your Atlanta tax attorney will intervene on your behalf with the IRS – meaning you’ll talk with your lawyer, not get bounced around to different people at the IRS. Your tax attorney may meet with an IRS Revenue Officer, automated collection service (ACS) personnel, Offer in Compromise examiners, or sometimes an Appeals Officer to resolve your tax problems.

The Gartzman Law Firm
Back taxes and IRS tax problems preventing you from economic recovery? Settle your back taxes today with the experienced legal counsel and financial guidance of Jeffrey S. Gartzman, Atlanta tax attorney and CPA by calling (770) 939-7710, or contact us online.

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