The federal government does not readily agree to take a payment for less than the amount due. However, in certain circumstances, it will agree to reduce an individual's tax liability through an offer in compromise.
Offers in compromise are sensitive issues. When granted, they can become public records, visible to other taxpayers.
If the taxpayer is at risk of filing bankruptcy, or the amount of outstanding tax debt is so large there is no realistic possibility of it being repaid, the IRS may agree to an offer in compromise.
The process used to obtain an offer in compromise is complex. It is important to have an experienced tax litigation attorney working on your case. Located in New York, NY, the law office of M. Bradford Randolph, Esq., PLLC, helps taxpayers in the U.S. and abroad secure offers in compromise that reduce their tax liabilities and result in the discharge of substantial tax debt.
New York City Tax Attorney Negotiating Offers In Compromise
In an offer in compromise, the IRS may agree to accept less than the full tax debt owed in exchange for forgiving the remaining tax debt. While these agreements sound good on paper, they are extremely difficult to secure and result in taxpayers making one or more lump-sum payments in discharge of their remaining tax debt.
The amount of tax debt to be paid in an offer in compromise is based on several factors, including the "collectability" of the tax debt. The IRS has very strict formulas it uses to determine how much could realistically be collected from the taxpayer's assets, properties and income.
In exceptional circumstances, you also may be able to reduce your tax debt through an offer in compromise even if you have sufficient assets to pay the tax due in full. To do, you will need to show that paying the tax debt would cause you economic hardship or would be unfair and inequitable. Attorney Randolph can help you to determine if your circumstances meet these IRS thresholds for securing an offer in compromise to reduce your tax debts.
Negotiating with the IRS is a difficult business. IRS agents are specially trained individuals who have all the resources of the federal government behind them. It is important to speak with a seasoned tax lawyer who has the knowledge and skills necessary to protect your interests during negotiations.
In addition to being an attorney, Brad Randolph is also a CPA. His accounting background serves clients well during the negotiation process. Mr. Randolph thoroughly evaluates his clients' financial situations, including their properties, investment portfolios and income to determine the portion of tax debts that may be forgiven. This special insight allows Mr. Randolph to provide clients with more comprehensive support during offer in compromise negotiations.
Contact M. Bradford Randolph, Esq., PLLC
If your tax debt is larger than you can realistically pay, or payment of your tax debt would be unfair and inequitable, you may qualify for an offer in compromise. Contact our Rockefeller Center law office today at 212-759-0097 to speak with attorney Brad Randolph about your options.