Generally there are two ways you can pay less than the full amount the IRS says you owe:
There are three kinds of IRS Settlements or Offers in Compromise:
A. Doubt as to Collectability – If you don’t have enough assets and excess income (after living expenses) to pay your tax debt in full, you may qualify for an offer in compromise based on doubt as to collectability.
If you cannot pay what you owe to the IRS, the IRS may accept less than the full amount of your outstanding tax debt in complete and final settlement.
B. Doubt as to Liability – If you have enough assets and income to pay the IRS debt in full, but believe that you do not owe the full amount, you may qualify for an offer in compromise based on doubt as to liability.
C. Effective Tax Administration – If the circumstances of your tax debt and your ability to pay it are such that a settlement would further the administration of the tax laws, you may be able to pay less than the full amount you owe. This is called an offer based on effective tax administration.
Call the Pappas Group at 407.915.3470 and let us help you settle your tax debt, or fill out our contact form
The tax attorneys, IRS enrolled agents, and tax CPAs of The Pappas Group in Orlando have more than 50 years of experience negotiating IRS settlements for their tax clients.
IRS penalties are assessed against taxpayers for willful failure to comply with the tax laws.
If you can show that your failure to comply was not willful, but, rather due to reasonable cause, the IRS is required to reduce or eliminate IRS penalties.
If the IRS caused delays in your payment of your tax debt, then you are entitled to a reduction of IRS interest charges.
It is not a simple matter to get the IRS to accept less than the full amount of the tax, IRS penalties and interest that the taxpayer owes. If you think you might qualify for an IRS settlement, it is wise to seek the advice of experience tax counsel.
Call or contact us today to discuss whether or not you qualify for an IRS settlement or some other collection alternative.
The IRS audited my 2007 and 2008 tax returns and disallowed 100% of my business expenses because the auditor said I didn’t have sufficient records. I hired The Pappas Group and they were able to prove by other means that my deductions were valid and the IRS ended up only disallowing about 15% of my expenses. Had I not hired Pappas I would been assessed taxes, penalties and interest in excess of $100,000. The Pappas group now does all of my accounting work and prepares both my business and personal tax returns.
My business received a Notice of Sale Tax Audit last year in 2013 that came with a 3 page single-spaced list of initial documentation the State of Florida was requesting. As soon as the State heard from The Pappas Group that initial list changed to three line items. From that moment on I did not have to deal with the State again. Pappas and his associates handled everything. It was a huge load off my mind. They deciphered all the letters and regulations and asked me to provide specific documents to the State rather than me turning over all of my records and letting the State have a field day. They handled all the little back and forth phone calls and emails and I never had to give a second thought or worry that had missed something. Vicki was awesome in reviewing everything the state asked for and everything I provided to make sure it was all done fairly and within the bounds of the law.