FAQ

What can you do that I can't do for myself?

Knowledgeable representation means a lot. Certainly, you may always represent yourself before the IRS, but taxpayers often find dealing with the IRS too frustrating and time-consuming. Further, an experienced attorney a can recommend planning steps that can legally and properly reduce the amount of an acceptable offer or settlement. Also, nationally, the Offer in Compromise acceptance rate, without professional representation, is under 20%. Ours is over 90%.

Finally, a taxpayer representing himself is subject to answering questions, under oath, about his income, expenses and assets. IRS uses this information to forcibly collect. Failure to answer those questions means a taxpayer's failure to cooperate. An experienced tax attorney will protect your rights AND your communication.

Is the IRS required to give me a payment plan?

Yes, if you owe the IRS less than $10,000 of tax, and it can be paid in 5 years. The IRS also has a streamlined plan that can be arranged if you owe a total of less than $25,000 including penalty and interest, and if it can be repaid in 5 years. While this is not a legal right, it is IRS policy. So yes, in most reasonable cases, IRS will allow a payment plan.

How long does it take for an Offer in Compromise to be approved by the IRS?

The IRS says that you should allow 9-12 months. We have found that generally, it takes 12-15 months. But, no matter how long it takes, we can usually suspend any levy, garnishments, and seizure of assets.

When the Internal Revenue Service approves an Offer in Compromise (OIC), what happens next?

Depending on the offer, you may have 3 to 24 months to make payment to the Internal Revenue Service (IRS) of the offered amount. Once the Internal Revenue Service (IRS) has received payment, they will release the tax liens, any levies, and there is no further back tax liability.

Can I file bankruptcy and discharge my taxes without entering into an Offer in Compromise (OIC)?

Maybe. Some taxes are dischargeable; some are not. Sometimes bankruptcy is the better option, but your entire situation should be discussed. Also, keep in mind that bankruptcy will be reported on your credit, while, Offers in Compromise (OIC) do not show up on your credit report in any negative way.

Before assuming that bankruptcy will discharge taxes, schedule a free consultation, and get ALL the right answers BEFORE filing bankruptcy.

What type of documents will the Internal Revenue Service (IRS)< ask for with an Offer in Compromise (OIC)?

Again, it depends on the offer. We will make a complete presentation to the Internal Revenue Service (IRS). We will collect, review, and discuss with you any documents before making any presentation to the IRS. Remember, your tax attorney must document the offer, but still must protect your rights.

How is the amount of the offer calculated in an Offer in Compromise?

There are many parts to the formula. You are allowed some decision-making in the process, including the length of time that you prefer to pay the amount offered. A number of other detailed factors are also considered. Your financial factors considered are your assets, liabilities, income and expenses. Your age, family & household, health, and other factors are also considered in a proper calculation.

How much does it cost?

Our initial consultation is FREE. We will determine the best solution, and then will provide a fair, FLAT FEE cost for the entire service, in writing. If necessary, we will make payment arrangements.

When do I have to pay the amount offered in an Offer in Compromise?

Upon receiving an approval letter from the Internal Revenue Service (IRS) you may then have 3 months to 5 years to pay the offered amount. After receiving payment, the Internal Revenue Service (IRS) writes off the balance of the liability and releases all tax liens previously filed. There are a few other rules regarding short-term payoffs & long-term payoffs of offers.

Will an Offer in Compromise show up on my Credit Report?

No. An Offer in Compromise does not get reported to the credit reporting agencies, and will not negatively affect your credit score. However, ignoring the problem will cause the IRS to file a notice of Federal Tax Lien, which will show up on your credit report.

The lien will remain until the tax is settled and satisfied.

Can I file bankruptcy and discharge my taxes without entering into an Offer in Compromise (OIC)?

What are your fees?

Our initial consultation is FREE. We will determine the best solution, and then will provide a fair, FLAT FEE cost for the entire service, in writing.

I filed my tax returns but didn't have the money to pay the amount owed. Can I reach a settlement to clear my back taxes?

Yes. We have a few ways to clear "back tax" liability, including installment agreements, Offer in Compromise, and reduction of penalty and interest. Bankruptcy is also an option. But remember, the "settlement" involves a big process, and must be handled professionally. You should not make any decisions without a free consultation first.

Will I have to see or speak to the Internal Revenue Service if you take my case?

No! Never again. All communications with the Internal Revenue Service (IRS) will be made directly by our attorneys and CPA's for you.

A taxpayer communicating with IRS is subject to answering questions, under oath, about his or her income, expenses and assets. IRS uses this information to forcibly collect. Failure to answer those questions means a taxpayer's failure to cooperate. An experienced tax attorney will protect your rights AND your communication.

Will one of your services trigger an Internal Revenue Service (IRS) audit?

No. We always first consider your needed solution, and the most proper and effective way to correspond and negotiate with IRS. Our work does not trigger on audit.

What if I don't have good records for my income?

This is often the case. We have success with Internal Revenue Service (IRS) based upon our knowledge of business industries (possibly yours), IRS standards, and IRS procedure. Although you may not have good records, we can still usually make a successful offer that fits your ability to pay IRS.

Can IRS really take my home?

Yes. The IRS will auction homes, land, vehicles and business assets to collect tax. The IRS is serious about collecting tax.

Once IRS files its Federal Tax Lien, it can foreclose on your asset, just like a mortgage lender. But the IRS's levy and seizure ability can also be stopped. Call immediately if the IRS has placed lien on your property, paycheck, bank account, or accounts receivable. The IRS is serious about collecting tax. Call immediately.

Can I stop a garnishment once it starts?

Yes. But timing is an important factor. Waiting will NOT stop the garnishment. The payroll department can NOT stop the garnishment. Call immediately.

Can I go to jail or prison for not filing my taxes?

Yes. It is possible. Willful failure to file, fraud, and tax evasion are FEDERAL TAX CRIMES.

The Internal Revenue Service (IRS) may seek to impose a criminal offense for failure to file tax returns as required. Even if you do file, the tax returns must be accurate and truthful. Failure to file accurate returns is illegal and is a felony, subject to criminal and civil penalties. This means that you can go to prison, pay substantial penalties and be financially destroyed. Willful failure to file returns can result in a punishment of one year in jail and a $25,000 fine ($100,000 in the case of a corporation). The U.S. Department of Justice web site features cases every year where someone is imprisoned for tax evasion.

See our page focusing on Tax Crimes.

How can I get money back that IRS has taken?

It depends on your timing. If you act soon enough, often our attorneys and CPA's can recover a refund simply by negotiation on your behalf. However, once IRS applies any funds levied or seized to an existing tax liability, getting that money back becomes much more difficult. Call immediately if your bank account, paycheck, etc. has been levied.