Using an Offer in Compromise to Settle Tax Debt
An Offer in Compromise is a program that every taxpayer wants to qualify for because it actually reduces the amount of tax debt owed. If we can prove with documentation that your monthly expenses exceed your gross monthly income, we will be able to get an Offer in Compromise accepted by the IRS. The largest misconception regarding an Offer in Compromise is that you have to come with a lump sum payment to pay off the IRS in order to settle, however, that is not the case. To prevent our clients from having to come up with a lump sum, Attorneys Tax Relief, LLC actually submits payment to the IRS on client’s behalf, and the client pays Attorneys Tax Relief, LLC back on a monthly basis. The practice is extremely beneficial for the client because it ensures the Offer In Compromise gets paid, paid on time, and without interest charges. An Offer in Compromise takes anywhere from 6-12 months to process.
How to Get Currently Non-Collectible Status
If we are able to get you into a Currently Non-Collectible Status with the IRS you will not have to pay any money back to the IRS. However, the IRS will place a lien on your person or property in order to be able to collect on the debt should your circumstances change. This means that the IRS would collect on the debt if you suddenly started making more money, received an inheritance, or won the lottery to name a few. The balance continues to grow in CNC status due to the interest they place on the debt, however, you will never have to pay it as long as your circumstances do not change. Client that qualify for CNC are generally unemployed, elderly, and/or have some assets that would not allow you to qualify for an Offer in Compromise but would allow you to qualify for CNC.
How to Get a Levy Released
To release a bank levy, we first have to make sure that you are current with all tax filings. Most clients that call in for a release of levy do not have all of their taxes filed, and we then have to file all missing years for the client. Once the returns are filed, we can then call the IRS to release the levy as long as we have the fax number to your financial institution. The time it takes to release a levy depends on how many tax years need filed, amount of debt, reason for the levy, etc.
Stopping Tax Garnishment of Wages
Stopping a garnishment is much like releasing a levy. You must be current on your tax filings, and you must be actively working on getting into a resolution with the IRS. To stop the garnishment we would need the name of the person that does your pay roll, as well as the fax number to the pay roll department in order to have the IRS fax the garnishment release document.
Using Repayment to Protect Assets
This is a monthly repayment of your tax liability over an agreed upon period of time. If you owe over $25,000 to the IRS, the IRS will require a full financial analysis to determine how much the IRS is going to request for a monthly payment. There is 3% attached to the repayment plan, therefore, the shorter the term, the less interest will be paid. Being in a repayment plan will prevent the IRS from levying your bank account, and garnishing your wages. It even prevents any liens being placed on you.