Q: I keep hearing about tax resolution services for those in tax debt. What exactly does this mean?
A: “Tax resolution services” refers to the many ways in which Direct Tax Relief works to eliminate your IRS or state tax debt. These services may include things like an Offer in Compromise (OIC), tax debt negotiation, penalty abatement etc. We can also work to remove a bank levy or wage garnishment and our certified accountants are available to prepare personal and business tax returns.
Q: What is an Offer in Compromise (OIC)?
A: Depending on your tax debt situation, one of the tax resolution services we may pursue is an Offer in Compromise (OIC). An OIC is an agreement between the taxpayer and the IRS that settles the full tax liability for a lesser amount. There are many factors involved in the success of an OIC, but very little has to do with the actual amount of tax debt you owe. During our free consultation, we complete a detailed financial analysis of your situation to determine if an OIC is the best option available to you. If an OIC is pursued, our experienced tax attorneys will then work hard to negotiate with the IRS on your behalf. Through this program, taxpayers unable to pay their tax debt may be able to settle with the IRS for a fraction of their total back taxes.
Q: Why would the IRS settle for so much less than I owe in back taxes?
A: Congress has authorized the IRS to help taxpayers settle their liabilities in order to get a fresh start. The Offer in Compromise program promotes voluntary compliance with future payment and filing requirements. There are 3 OIC plans that you may be able qualify for:
- Doubt as to Liability – If it’s not clear that you actually owe the money.
- Doubt as to Collectability – Based upon your assets and income, you can’t afford to pay the IRS the full amount you owe in a reasonable period of time.
- Effective Tax Administration – The IRS may allow you to pay less if you can show that it would be unfair to require you to pay the whole amount even though you could afford to do so (for example, if you are retired and paying the tax debt might mean losing your home).
Q: Why hire a tax attorney or tax relief company?
A: Most taxpayers find dealing with the IRS intimidating, frustrating and extremely time-consuming. A specialized tax attorney or tax relief company can reduce your stress and make the process go much more smoothly. Plus tax attorneys, such as those at Direct Tax Relief, are highly skilled at negotiating with IRS and state agents and can often achieve exceptional results.
Q: I have not filed tax returns for many years. Is it too late to take advantage of any tax resolution services?
A: Not at all. While those in tax debt must file any overdue returns, Direct Tax Relief has professional accountants to complete this step. After your returns are processed by the IRS, we can begin looking into which tax resolution services best apply to your particular situation.
Q: If I hire Direct Tax Relief will I still have to talk to the IRS?
A: In most cases the answer is NO. Once a Power of Attorney is filed (which we will complete), the tax attorneys at Direct Tax Relief will handle all correspondence within the different divisions of the IRS or state tax boards. That means we will handle the communication between all agents, officers and auditors so you can get back to focusing on your business, family and life!
Free yourself of tax debt. Let our tax experts solve your tax issues today!
Call Direct Tax Relief today at (800) 505-4134 for your FREE consultation.