Offer in Compromise and Payment Plans
You cannot pay your taxes, what are your options?
I owe back taxes and there is no way I can pay this. Why are the penalties and interest so high?
Can the IRS reduce the balance like a collection agency?
Why do I have to complete a detailed financial statement just to get into a Payment Plan?
When the IRS finally answers the phone, they tell me I have enough money to pay in full. The Massachusetts Department of Revenue is threatening to suspend my driver’s license if I don’t enter into this Payment Plan I can’t afford.
Payment Plan
Both the IRS and the Massachusetts Department of Revenue have Payment Plan options if you cannot pay in full. However, their options may differ depending on the balance of your tax debt. You may have to prove that you qualify for a Payment Plan. In other words, prove to the MA DOR and IRS that you cannot pay in full and cannot afford to pay the proposed monthly payment. Laura can explain your options and help you get into an affordable payment plan.
Financial Statement
If you owe over a certain amount, you may have to complete a confusing financial statement before you can qualify for a Payment Plan. And if you are self-employed, or own your own business, you will probably need a financial statement for that too. This process is worse than applying for a mortgage. The IRS will compare your expenses to the National Standards and say that you can pay them more money because you are living beyond your means. The Massachusetts Department of Revenue may deny your Hardship Payment Plan request. Laura and her team excel at completing those aggravating financial statements. Let us help.
Offer in Compromise
The IRS will take less than the amount due if you qualify for an Offer in Compromise. This process is not as easy it appears on the late night T.V. commercials. It can be a long process where the IRS puts your business and family finances under a microscope and scrutinizes your lifestyle, debts and expenses as well as your income. The IRS is entitled to all of the equity in your assets and some of your future income. This includes:
- Equity in your home and cars
- Bank accounts, including joint ones with family members
- College savings accounts
- Retirement accounts
- Inheritance
This is very complicated if only one spouse owes the money and the other one has income and assets. The IRS will compare your expenses to the stingy National Standards and accuse you of living beyond your means even though there is no way you can find a cheaper house or apartment, then they will deny your Offer.
Attorney Brown can you help you navigate this process. She has successfully settled tax debts for individuals in all economic classes including doctors, lawyers and other high income earners with valuable assets.
Seeking professional help can save you time and money
Laura Brown is a successful business owner as well as a corporate and tax attorney. She understands what is needed to help you, your family and your business.