Settling Tax Debts

A lawyer can deal with the IRS on your behalf

Many taxpayers think that the IRS, Arizona Department of Revenue (ADOR) or other tax authority will relentlessly pursue every penny they're owed. The reality of tax law is that the IRS is a creditor like any other, and it is authorized by law to settle or compromise tax liabilities. An Arizona tax attorney from Brown, Naegle, Crider & Jensen LLC may be able to help you settle your tax debt for significantly less than you owe.

Founding partner and lead tax attorney Shad M. Brown formerly worked in the IRS's Office of Chief Counsel. He understands how the IRS views settlement offers and has extensive experienced helping Arizona taxpayers settle their tax debts. If you owe significant amounts of back taxes to the IRS, ADOR or other tax authority, we may be able to help.

How settlements with the IRS work

To initiate a 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 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 a 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.

We'll help you 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 understands the urgency of tax matters, and we'll help you take strong, efficient action to resolve this debt.

Don't try to settle your tax debt on your own. Get an experienced Arizona tax lawyer on your side. We can explain all of your legal options and work toward a favorable resolution of your tax debt. Contact us online or call 480-378-9000 today for your free consultation.

3850 E Baseline Rd Suite 112
Mesa, AZ 85206
local phone: (480) 378-9000