The IRS allows you to negotiate with them to repay old tax debts. It is their way of cleaning up an existing mess and encouraging you to get back into the system. The Offer In Compromise program is based on supplying the IRS or the State with financial information that will show them you’re entitled to a break on repayment of the whole liability.

We can work with you through this process to see what you qualify for based on a few factors that the IRS looks into.

Ability to pay

The IRS will first look into seeing if you even have the ability to pay them back. Do you have a job? Are you unemployed and if so what are prospects for re-employment at the moment?

Income

What is your income? The IRS will want to know how much money you are bringing into your home before they can come to a conclusion on what you’re eligible for. Your income and living situation could impact if you qualify for OIC.

Expenses

Are you making minimum wage but have the expenses of someone on a $50,000 salary? The IRS will want to know this.

Asset equity

What are your current assets worth?  

We can help you decide if you qualify for this or if you have better options elsewhere. The IRS will generally approve OIC cases if there’s reason to believe that most of it can be paid off in a reasonable amount of time. Depending on how bad your net worth and current income looks, you could be entitled to a “pennies on the dollar” settlement.

Tax problems will continue to get worse and more expensive with new penalties and interest added each day. You may qualify for Penalty Abatement however if you were attempting to follow the requirements of tax law and couldn’t meet them due to situations out of your control. If your reason is justified for failing to file your return, pay your taxes on time, or forget to do any myriad of tax compliance steps, we may be able to negotiate an abatement of your tax penalties and the interest associated with them.

There are many grounds the IRS and the State typically consider “reasonable cause” for avoiding the assessment of a penalty. Fill out our questionnaire and we can see if your case qualifies. If you do then we maY work with you to try and give you a smoother Penalty Abatement process.

Once we’ve worked through this we can help you submit your case to the IRS. They will review the facts and effort you made as well as prior history in filing your taxes on time.

If you were unaware of a spouse’s failure to be forthright on your joint tax return, then the taxing entities allow a simple approach to relieve you from the responsibility of shouldering your half of the tax burden. This process requires certain forms that are available from the IRS and the State of Hawaii.

We can help you find those forms and show you how to properly fill them out. This can obviously be a complicated and stressful process, but we can help you get through them to the best of our ability. We want to help you to the best of our ability and we can do that by knowing your situation. So come in prepared and we may be open to giving you the best support we possibly can.

If your situation just falls outside the parameters of the Offer In Compromise, Penalty Abatement, or Innocent/Injured Spouse programs, then the IRS and the State will still accept a repayment of your tax liabilities on an installment basis, if we can convince them that that’s the most effective and efficient way of collecting the tax. Depending on your situation that may be what we seek out, but this is typically a case by case basis.

Higher tax liabilities can often require significant negotiating to prevent a levy or seizure from taking place – installment agreements relating to taxes under a certain dollar amount are usually easier.

If we are able to secure you a payment plan that the IRS agrees to then we can move into what kind of payment plan you are participating in.

Short Term payment plan

A short term payment plan is an agreement with the IRS that you will be paying your taxes owed within a certain period of time. If the IRS agrees to this then you may not be liable for a user fee.

Payment plans costs and fees

While we can try to avoid you paying payment plans costs and fees, there may be cases where the IRS will add a tax bill to your status despite our best abilities to avoid this situation. We will work with you throughout this process.

As a preliminary step in using an Offer In Compromise, Installment Agreement, or other program, we often need to act quickly in order to delay, avoid, or release their powerful lien and levy capabilities. This can often be accomplished if we can explain that our offer to them is the most effective and unobtrusive form of satisfying the tax liability.

After this the IRS may choose one of the following options based on your situation.

Discharge of property

A discharge will remove the lien from the property itself. If this option is available we may try to pursue it.

Subordination

The subordination option does not remove the lien from your case, but will allow other creditors to move ahead of the IRS and finding a loan or mortgage becomes a more realistic option.

Withdrawal

When a withdrawal occurs the IRS will not compete with other creditors for your property, but the amount due still must be paid in full.

No matter the options given to you we can try to get you the best possible result. We will always work with you through this process.

If you have been assessed as “the responsible party” for failure to pay employment taxes and you’re questioning the accuracy of the IRS or State’s assessment, then let our Hawaii law firm intercede on your behalf. If you have been given this heavy-handed tax and you fail to respond in time, then you will be saddled with the most onerous of all tax liabilities. It can never be discharged in bankruptcy and is attended by significant interest and penalties. You must decide to end your tax problems with the IRS and state of Hawaii. No one else can decide for you. Our firm can assist in ending the misery, but you must take the first step by contacting our Hawaii bankruptcy attorney or telling us about your situation online. I can help you explore all the choices and options with Tax Resolution Services in {{lpg_city}} {{lpg_state}}.