What kind of Tax Attorney in Atlanta can help with filing an Offer in Compromise?

Offer in Compromise is a payment plan that allows you to settle your IRS tax debt for less than you really owe. Offer in Compromise was originally created by the Internal Revenue Service and has been advertised on television and radio. It is a legitimate program that can be either approved or denied by the IRS based on your individual financial situation. In the end, the decision made by the IRS is contingent on your ability to pay back the debt over the course of a few years.

It is difficult to qualify for an Offer in Compromise although it is possible to do so. Tax debt is not normally condensed by the IRS, who normally collects what is owed to them. Firstly, the IRS will examine your complete financial situation to determine whether or not you are eligible for the program. They will firstly look at your existing monthly disposable income, based on the IRS national standards. Expenses such as credit card payments and cable television payments will not count toward your monthly expenses when the IRS is calculating your ability of paying the debt. Next, in order to decide whether you can repay the debt or not, the IRS will analyze your assets to determine your equity. Any equity that the IRS finds will be considered ability to repay the debt. In order to use the assets towards the debt, the IRS will require that you either liquidate or exchange the assets for cash. If neither of these things takes place, the Offer in Compromise may be denied. In addition, the Internal Revenue Service may require you to reveal all of your liquid assets that you can obtain access to, your bank accounts and your retirement accounts.

Once you are in agreement with the IRS, you must remain in compliance with all tax laws so that your agreement will not be considered void. In other words, all tax returns for the next five years must be filed on time and any balance on these returns must be paid immediately. If any debt is accrued over the course of these five years, the Offer in Compromise will be defaulted and all interest and back penalties will be added to the total debt amount. As a taxpayer, you must know that tax debt expires 10 years from the date that it is assessed. Two things that stop the tax debt from expiring are filing for an Offer in Compromise or filing for bankruptcy. The process of filing for an Offer in Compromise may take over a year. If the Offer in Compromise is denied, the time it took for the Internal Revenue Service to review the documents and deny it plus an additional six months will be added to the expiration date.

It is also very important that before filing for an Offer in Compromise you consult a tax professional. A good tax attorney will know whether or not filing for an Offer in Compromise is your best option and what the next step is for you.

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