Offers in Compromise – Installment Agreements

How Fresh Legal Perspective Can Help

If you or your business owes money to the IRS or the Florida Department of Revenue, it is important to know your rights and understand what options may be available to you. Was the tax properly assessed? Do you qualify for a payment alternative? Is your spouse or former spouse solely responsible for the deficiency?

Fresh Legal Perspective can provide legal guidance when deciding whether you or your business are protected by the innocent spouse provisions, whether your due process rights were violated, or how to get the IRS to agree to a manageable and fair payment schedule.

Call or email us today to schedule a consultation with an attorney who will review your personal and business tax situation to determine the best course of action to resolving debts with the IRS or Florida Department of Revenue.

Payment Alternatives

1. Installment Agreement: If you cannot pay the full amount of your tax debt at one time, you may qualify for an installment agreement. When entering into an installment agreement with the IRS, you pay your debt over a specified period of time by making equal, monthly payments. In most cases, installment agreements do not stop the accrual of interest or failure to pay penalties. However, the ability to pay your tax debt over a period of a few months or a few years gives you much more flexibility in managing your personal or business cash flow.
2. Offer in Compromise: If you determine that it is impossible for you or your business to ever pay the full amount of your tax debt or to enter into an installment agreement, you may be able to qualify for an offer in compromise with the IRS. Under this payment alternative, you or your business negotiate and reach a settlement of your tax debt for an amount that is less than the original assessed amount. The settlement is generally calculated based on the sum of your net equity in your assets plus what you can pay monthly over the course of several years. The IRS sets forth very stringent rules regarding your assets and personal living expenses in order for you to qualify for an offer in compromise.
3. Currently Not Collectable: The IRS can determine that your tax debt is currently not collectable. That means they will stop collection action on your tax debt, and allow you to get back on your feet. They will have periodic follow ups with you to see how you are doing financially. All the while, interest and failure-to-pay penalties will continue to accrue.

Innocent Spouse Rules

There are multiple provisions that allow “Innocent Spouses” protection from undue tax burdens. Typically these provisions will provide protection for the innocent spouse when the innocent spouse (i) had no knowledge of the cause of the tax issue; (ii) is divorced/widowed/separated and the cause of the deficiency was not attributable to the innocent spouse; or (iii) equity requires the protection of the innocent spouse.

Fresh Legal Perspective has experience in consulting with individuals and business owners to evaluate if payment alternatives or innocent spouse rules may be useful in resolving IRS debts.

 

This portion of the site is for informational purposes only. The content is not legal advice.