Problems with the Internal Revenue Service can give you a big headache – one that lasts for years. Don’t let that happen to you. Get help with the IRS. The most common IRS problem is owing delinquent taxes. In other words, you have taxes that you have not paid. Depending on when you first received notice from the IRS about your delinquent case, the amount you owe has grown due to fines, penalties and interest.
The IRS uses several methods for enforcing the tax requirement, including wage garnishments, bank account levies, revoking of licenses or permits, seizing of property, and referral of the taxpayers account to a private collection agency. You can get yourself in a real mess if you let your tax problem go for too long. The IRS does maintain a comprehensive and detailed website with a lot of information about what to do, and the forms, laws, and procedures involved. Even so, handling a tax problem with the IRS can be confusing and daunting. This is why tax attorneys came into being — primarily to help people with their tax problems. So, an IRS tax relief attorney is one source to get tax help with the IRS.
Sometimes, people choose to use a good certified public accountant. Some CPAs specialize in taxation and may have a Masters degree in it. If you have a good accountant, you can start there. But often they will end up recommending an IRS attorney if your case is serious — meaning you’ve been getting certified letters from the IRS, which is the first step in the IRS attempting to enforce their authority and get you to pay. Even if you are working with an accountant or attorney regarding your tax problem, you should educate yourself as best you can. Go online or to a local bookstore and buy a good book about tax relief and IRS tax resolution. You can also search online for the taxpayer bill of rights and read what your rights are.
Remember, the IRS has a tax relief program designed to help taxpayers settle their debt, usually for less than what is owed — often much less. This is known as the offer in compromise. The IRS definition of an offer in compromise (OIC) is “an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. 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.”
They also state that, “In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay and includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.”
There are three kinds of Offers In Compromise. To learn what these are and learn more about getting help with the IRS, visit www.irs.gov