Are you tired of dodging the IRS? Dealing with tax debts can send chills down the spine of any taxpayer. To gain some relief and a fresh start, taxpayers can seek an offer in compromise with the help of experienced professionals from OnPoint Resolution. For taxpayers in Mount Laurel, NJ, getting an offer in compromise can seem like an uphill battle, but it doesn't have to be. The different types of IRS offer in compromise available to taxpayers, so you fully understand your options when seeking relief from tax debts.
1. Doubt as to Liability
Doubt as to liability occurs when you have a legitimate dispute over the tax liability in question. In this case, the IRS will analyze the data submitted by the taxpayer to verify the accuracy of the tax debt. Through legal representation, taxpayers can negotiate the lowest liability possible on the amount owed. Therefore, if you believe that the IRS has miscalculated your income and you don't owe as much as they claim, doubt as to liability could be your best chance to seek a compromise.
2. Doubt as to Collectibility
Doubt as to collectibility is the most common type of offer that is granted when the IRS believes that it will be unable to collect the full amount owed from the taxpayer, even if they use legal remedies such as wage garnishment or seizure of assets. To qualify, taxpayers must prove that the taxes owed are a financial burden and they can't pay the debt without causing undue hardship. Essentially, if you can prove that your financial situation leaves you with nothing left over after necessary expenses, the IRS may offer a reduced settlement.
3. Effective Tax Administration
Effective Tax Administration (ETA) is the less common type of OIC and is usually the last resort. To qualify, taxpayers must prove that they can't pay the entire tax amount due to exceptional circumstances. Although this is a difficult path to take, the IRS may grant ETA when the total debt can be paid in monthly installments or using other legal remedies that don't significantly impact the taxpayer's quality of life.
4. Not Filed or Not Required Tax Returns
Despite good intentions, taxpayers often fall behind on their tax returns, which can quickly spiral out of control. The IRS won't consider an offer in compromise until all outstanding tax returns are filed. If you haven't filed in a long time or have missed a mandatory tax return, you may be able to request an offer in compromise in Mount Laurel, NJ. It is important to note that penalties for delays in filing returns are significantly higher than interest charges for outstanding balances, so the sooner you file, the better.
When you're facing mounting debt to the IRS, you want to know all of your options. OnPoint Resolution LLC has helped numerous taxpayers in Mount Laurel, NJ, navigate the complicated tax system to reach a satisfactory compromise. The four different types of Offer in Compromise are advantageous only when you use them in the right circumstances. It's essential to have a team of professionals in tax relief to guide you through the paperwork and identify what kind of offer in compromise suits your needs. Don't let unpaid taxes push you into despair - consult with the experts at OnPoint Resolution LLC to pursue the best course of action. Contact us to learn more about IRS offer in compromise and how our tax relief services can help you.
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309 Fellowship Road, suite 200
Mount Laurel, NJ 08054
Tel. 973.840.7350
Fax. 347.344.6942
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