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IRS Tax Debt Relief

An IRS tax debt settlement attorney will help you to:

  • Settle your tax debt for pennies on the dollar
  • Negotiate reduction or removal of penalties and interest charges
  • Remove tax liens
  • Settle payroll taxes
  • End wage garnishment
  • Stop IRS bank levy or IRS tax levy
  • Prevent property seizure

Some of the Alternatives for Tax Debt Help

Tax Debt Relief Strategy #1: Bankruptcy

In some instances you may be able to eliminate certain IRS debts through bankruptcy:

  1. If your tax liability is over 3 years old (from the time that it came due);
  2. You filed your taxes in a timely fashion (if not you must have filed it at least 2 years before filing for Bankruptcy);
  3. You have not been assessed by the IRS within the past 240 days.

Eliminating IRS debts through bankruptcy requires a clear understanding of the rules, so contacting a debt attorney for a careful review of your situation is recommended.

Tax Debt Relief Strategy #2: IRS Penalty Abatement

When you can’t pay your tax debt because of circumstances beyond your control, you may be able to make the case that the interest and penalties that have been added to your account are unreasonable. While it doesn’t eliminate your tax debt, it can remove the total amount owed. Circumstances that may be considered include taxpayer hardship (Serious illness, death, or natural disaster), bad tax advice from a professional, changes to the tax code, or IRS mistakes.

Penalty Abatement applications must comply with IRS rules and regulations and be very specific. Due to the complexity of this approach, it’s advisable to seek professional advice. Nader & Berneman can advise you on whether this approach may be appropriate for you, and if necessary in your case provide referrals to a reputable tax CPA.

Tax Debt Relief Strategy #3: IRS Debt Settlement

IRS tax settlement is an option that may allow you to settle your debt for pennies on the dollar, and will vary based on your personal budget, existing assets, and age (which may affect your future earning ability). Nader & Berneman can advise you on whether this approach may be appropriate for you.

Communicating With the IRS Can Be Helpful

  • If you are unable to pay your tax liability, your account can be flagged “not currently collectible.” This means that the IRS will not pursue collection until you are in a position to accept a Payment Plan or and Offer in Compromise, both of which are explained below:

Tax Debt Relief Strategy #4: IRS Payment Plan

The IRs has the authority to give you more time to pay if you can’t settle your tax debt in one payment. There is a fee for setting up a payment plan, and you must make regular periodic payments.

Tax Debt Relief Strategy #5: IRS Offer in Compromise

Do not enter into an IRS “OFFER IN COMPROMISE” before talking with us first! The “OIC” option allows you a one-time change to wipe out your IRS debt for a fraction of the actual amount outstanding. Each case is handled individually based on certain guidelines. However, your circumstances might indicate financial hardship, doubts about whether the amount assessed is actually due, or an inability to pay the full amount within 5 years. Because of the complexity of an OIC application, it’s best to seek the assistance of a professional.

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