Some states offer a Tax Settlement program or a variation of one. If you have outstanding state tax liability, contact us so one of our tax consultant experts can tell you whether your state has one and if you qualify for a Tax Settlement.
Collection appeal rights are not always available for every state. Some states do provide certain appeal or hearing rights for certain actions on your tax account.
No, unfortunately every state taxing authority has different criteria and procedures for the type of payment plan they offer. Most of them have different thresholds that could be based on the tax type, tax amount, and type of taxpayer entity before they can make a final determination. They will often ask for financial information, proof of income and expenses, and a formal written proposal for the payment plan.
DIY Tax Relief:
It’s always best to hire a licensed tax professional to help navigate the Tax Settlement options that may be applicable to you. Our decades of expertise in tax regulations and strategies simplify the resolution process and leaves you time to do what you love both professionally and personally.
Complete the applicable appeal form and send it to the Revenue Officer or the IRS address from the notice. Faxing the form is the quickest way to get it filed, but you must obtain the correct fax number from either the Revenue Officer or the representative from the Automated Collection Systems center.
While you can certainly do so, we encourage you to always have a licensed tax professional to represent you in the appeal hearing. Our licensed tax professionals can navigate the Internal Revenue Manual and knows what section of the Manual can be used to defend your position based on the appeal request.
If you meet certain criteria for Spousal Relief, you may qualify for relief from liability arising from community property law. You will need to speak to a licensed tax professional to determine if you qualify.
Innocent Spouse relief must be filed within 2 years from the first IRS attempt to collect the tax. Equitable Relief must be filed within the Collection Statute Expiration Date or Refund Statute Expiration Date, depending on the type of relief requested.
Offers in Compromise:
The Fresh Start Initiative was created by the IRS in 2011 to help struggling taxpayers resolve their tax liability. Specifically, it eased restrictions on lien filing and lien withdrawal, and streamlined the Installment Agreement and Offer in Compromise processes. Part of this initiative was a rule expansion to allow for additional other expenses to be included and a revision of a taxpayer’s future income when the IRS reviews Offer in Compromise applications.
Contrary to what most tax relief companies state, the Fresh Start Initiative is not a separate resolution strategy from an Offer in Compromise or any other resolution. This initiative led to new collection policies, many of which are still in place today.
There is no general rule for determining how much you should offer the IRS, and the amount is dependent upon your unique personal and financial situation. Our in-depth analysis can help you determine what you should offer.
If you owe individual income tax to the IRS, you may qualify to set up to your own payment plan based on the amount of tax debt you owe. If you owe any other type of tax or an amount that does not meet certain thresholds, you may need to provide a Collection Information Statement, proof of income and expenses, and a formal written proposal for the payment plan.
No. The only way to stop most penalties and interest from continuing is by paying the tax liability in full or by having an accepted Offer in Compromise.
If you owe $50,000 or less, you may qualify for a Streamlined Installment Agreement. This is an agreement between you and the IRS in which you agree to pay a set amount against your tax bill every month for a determined period of time.
Unlike other installment agreements, a Streamlined Installment Agreements does not require a Collection Information Statement, proof of income, assets, liabilities, or expenses.