When you are audited by the Internal Revenue Service, you have several options available to you, including an Offer in Compromise (OIC), Installment Agreement, and Currently Not Collectible status. If you are unable to come to an agreement with the IRS about the current due taxes, one of these other solutions may be right for you. You should consult with a qualified tax attorney in your area before you proceed with one of these other options. Your attorney will likely tell you whether an Offer in Compromise is right for your particular circumstances, as well as explaining how it would affect your ability to pay back taxes. You may also find that you cannot successfully negotiate a payment plan with the IRS, or that you do not meet the criteria for Currently Not Collectible status.
An Offer In Compromise allows you to pay a lump sum payment or perform monthly installments until your tax liability is satisfied. Although this option is usually helpful in expediting your return, it does not remove your debt from the IRS entirely, nor does it prevent you from being pursued for back taxes by the agency. A collection agency will continue to pursue you for the remaining unpaid amount, along with any interest and penalties that may have been assessed. If you are unable to pay the total amount due in full, the IRS can place a lien against your property, requiring you to sell it or liquidate it to repay the back taxes.
If you successfully negotiate an OIC, you will be able to pay off your liability in full within two years, as long as you maintain regular payments. Your tax liability will not be considered a total because the IRS only deducts the amount that you actually paid over the course of the agreement. You will not, however, be able to collect a lump sum payment if the IRS decides to audit you during the timeframe of the arrangement.
Installment Agreements allow you to pay your liability in small amounts over a certain period of time. This plan is often used to settle the IRS long-term taxes. An IRS Lawyer Loveland, CO can help you determine whether you qualify for an Installment Agreement. If you meet the guidelines, you may receive an Offer in Compromise from the IRS. If you reject the offer, the IRS can initiate collection actions to the extent required by law. Click here for more details.
If you are having trouble making regular monthly payments, your best option may be an Installment Agreement. The IRS Lawyer will negotiate a payment plan that will help you repay your liability in a convenient and affordable way. If you fail to meet the terms of the agreement, however, you may be forced to pay the full amount owed. In most cases, an IRS Lawyer will not sign an Offer in Compromise (OC) for you unless you fully agree with the terms. In such instances, the IRS will seek legal action to recover the full amount of tax liability.
An IRS Lawyer can also help you make sure that you do not run afoul of the audit laws that apply to you. There are several areas that the audit laws target, including: income tax liability, asset valuation, undue influence and potential conflicts of interest, and identity theft and credit card fraud. A successful resolution to all of these areas allows you to move forward with your tax returns and become a more compliant citizen. If you are having trouble meeting your obligations, your best option may be an Installment Agreement. Contact a trained IRS attorney today to discuss your options.