Owe Back Taxes? A Mesa Tax Lawyer Can Help You Settle Your Tax Debts

How do tax debt settlements with the IRS work?

To initiate a tax debt settlement with the IRS, you need to submit a formal Offer-in-Compromise (OIC). This complex application process can significantly reduce your liability, but you need to convince the IRS of one of the following criteria:

• You are unable to pay the full amount owed in a reasonable time, whether as a single lump sum or in installments.
• Payment in full would cause an economic hardship or be unfair or inequitable due to extenuating circumstances. For example, you may be unable to work and earn income due to health problems.
• There is doubt as to the amount of your liability. (While possible, this is fairly unusual and rarely employed in tax debt settlement negotiations.)

Your OIC includes a minimum offer based on your income and assets. The IRS will calculate your "reasonable collection potential" (RCP), again based on verifiable information about your income and assets. Working with an experienced tax attorney who understands the formulas the IRS uses will help you to make an offer that is acceptable to the IRS without offering more than necessary to settle your debt. In addition, an attorney can help you get your other affairs in order, such as filing all required tax returns, so that the IRS will be able to accept and review your OIC.

Let a Mesa tax attorney take immediate action to resolve your tax debt

Keep in mind that your unpaid tax liability continues to accrue interest while your OIC is pending. That's why it's important to get it right the first time - having to make multiple offers due to a rejection from the IRS will drag out the process and further increase the amount you owe - and it's why you need to move quickly. Our law firm thoroughly understands tax law, and we'll help you take strong, efficient action to resolve your debt.

Don't try to resolve your tax problems on your own. Get an experienced Mesa tax lawyer from Brown & Jensen on your side. We can explain all of your legal options and work toward a favorable resolution of your tax debt. Contact us today for a consultation.