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Category: Offer in Compromise

What You Should Know About the Downsides of an IRS Offer in Compromise

18 October, 2024 | Offer in Compromise

Summary An Offer in Compromise is a tax resolution option that allows individuals to pay off their tax debt for less than they owe. While it offers benefits, there are also downsides to consider. Filing an Offer in Compromise requires a $205 application fee and an initial payment of 20% of the proposed lump sum amount or the first month's payment for periodic payments. The IRS will scrutinize financial records, and accepted offers become public records. The process can be le... CONTINUE READING

Overcoming NY State Back Taxes: Relief and Consequences

24 August, 2024 | Offer in Compromise Tax Debt Tax Issues Tax Relief

Summary   New York State taxpayers who are unable to satisfy their tax payment or filing obligations may face consequences such as tax warrants, wage garnishment, asset seizure, and penalties. Relief options include requesting penalty abatement, setting up monthly payment plans, exploring the Offer-in-Compromise program, filing for Innocent Spouse Relief, and utilizing the Voluntary Disclosure Program. Appeals against tax assessments are also possible. Unpaid taxes resu... CONTINUE READING

New York State offer in compromise program

30 October, 2022 | Offer in Compromise

Summary The New York State offer in compromise program allows taxpayers to reduce tax debt they cannot fully pay when it is due. It is for those who need long-term relief and would face undue economic hardship if they paid the full amount. Undue economic hardship means being unable to pay the tax debt and meet reasonable financial obligations. This typically applies to individuals who are insolvent, meaning their liabilities exceed their assets, and a business that is either out of... CONTINUE READING

Apply For Offer In Compromise to Settle Your Tax Debts

13 September, 2021 | Offer in Compromise

Apply For Offer In Compromise to Settle Your Tax Debts Tax debts are always an unwanted headache for taxpayers. They are a specific amount of tax that is payable to the Internal Revenue Service. They increase over time with the addition of interest and penalties. If they are not paid as soon as possible, they get double and that hurts more. Tax debts are due to not paying taxes by the deadline. And this happens due to many different reasons such as inability to pay taxes, fa... CONTINUE READING

When is an Offer In Compromise a means for penalty relief?

10 May, 2016 | Offer in Compromise

When is an Offer In Compromise a means for penalty relief? I had a recent client that owed about $30,000 to the NYS Tax Department. The taxes related to late filed income tax returns for a few years, where he sold a sizable asset. We went through the normal procedure of filing the unfiled tax returns, and once the tax assessments were received we attempted to get the penalties abated. It was somewhat hopeless (to be honest). I felt bad since the client on... CONTINUE READING

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What to Do When You Receive an IRS LT11 Notice of Intent to Levy

Summary An LT11 Notice of Intent to Levy is sent by the IRS to taxpayers to inform them of their unpaid tax balance and the potential seizure of their assets. This notice is usually preceded by other letters and notic...