There's the version of tax resolution the late-night commercials sell you. Then there's how it actually works. I'm Darrin Mish, a Tampa tax attorney. I've spent 32 years on the inside of these cases. Here's the real version.
There are many so-called tax professionals these days who advertise on television and elsewhere claiming to be able to reduce your tax liability by unbelievable amounts. If you are in a tight spot with the IRS or have sky-high tax debts, you should be wary of claims by anyone that guarantees success in reducing your taxes by significant amounts. The truth is negotiating with the IRS takes lots of experience, thorough knowledge of the relevant laws and high inter-personal skills. No one can guarantee they can reduce your tax debts.
Many dubious tax professionals advertise that they can obtain an Offer in Compromise on your behalf. An Offer in Compromise is where the IRS agrees to waive part or all of your taxes under certain circumstances. But bear in mind that the IRS imposes very strict conditions to granting an Offer in Compromise, and the conditions have become more stringent over the years. This is seen from the IRS website, www.irs.gov, that says, “Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.”
The IRS website also goes on to warn taxpayers against engaging companies that promise to get you an Offer in Compromise to settle your taxes for less than the full amount you owe for pennies on the dollar.
An Offer in Compromise is never the first method used by the IRS to collect taxes from you. In fact, an OIC is the last resort. According to www.irs.gov, “If taxpayers are unable to pay their taxes in full, there are other payment options, such as monthly installment agreements, that must be explored before an OIC can be submitted.” So if you have not even begun to negotiate terms of settlement with the IRS, do not even bother about applying for an Offer in Compromise.
That said, it is nevertheless strongly advised that you hire a qualified tax professional like a tax attorney to negotiate with the IRS on your behalf. Tax attorneys have the skill, qualification and experience needed to bring about a settlement that would be satisfactory for both you and the IRS. Look for tax attorneys with a proven track record and a genuine interest in your tax affairs.
If you require a tax attorney to resolve your tax issues, call us at (813) 229 7100 or toll-free 888 438 6474. We have been fighting for the rights of taxpayers for decades and have the necessary track record to prove it. Visit our website at www.getirshelp.com.
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