Tax Law And Litigation Services For Businesses And Individuals

New York City Offers In Compromise Attorney

How Can I Obtain An Offer In Compromise?

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.

For example, 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.

Offers in compromise are sensitive issues. When granted, they can become public records, visible to other taxpayers. The process of obtaining an offer in compromise is complex. It is important to have an experienced tax litigation attorney working on your case.

We Negotiate Offers In Compromise

The Manhattan 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. Contact us for experienced tax defense counsel.

How Do I Apply For An Offer In Compromise?

To apply for an offer in compromise, you will need to:

  • Gather financial documents: Get together the records and documents that reflect your income, expenses, asset equity and liabilities. You must provide a clear and accurate financial snapshot of your ability to pay.
  • Fill out the form: Then, you will complete the IRS Form 656, Offer in Compromise, along with the required application fee and initial payment.
  • Submit everything: Finally, you submit your application to the IRS for consideration.

The process can be intricate, so having legal guidance can significantly increase the likelihood of a favorable outcome. Attorney Randolph can guide you through the process. He can determine the appropriate offer amount and assist in filling out the forms to provide accuracy and completeness. This also includes being able to speak to the IRS. If you have an attorney, the IRS must speak with only your attorney, alleviating that pressure from yourself.

What Is A Qualifying Undue Hardship?

A qualifying undue hardship is when paying the full amount of taxes owed would cause significant financial distress. To count as a qualifying undue hardship, paying the full amount must be more than just an inconvenience. It must be a serious situation in which paying the tax debt in full would prevent you from meeting basic living expenses. To determine whether an undue hardship exists, the IRS considers factors such as:

  • Income
  • Expenses
  • Assets
  • Debts
  • Living conditions
  • Their related matters

Attorney Randolph can help you document and demonstrate these conditions accurately to the IRS. His knowledge can be critical in proving that you cannot maintain a minimal standard of living if required to pay the tax debt in full.

Are You Eligible For An Offer 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 so, 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.

The Skill You Need To Negotiate With IRS Agents

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, 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.

Get Relief From Tax Debts: Call Our Office

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 347-315-1648 to speak with attorney about your options.