Providing Solutions for Tax Debt
Qualifying for Tax Relief
Are you worried about qualifying for Defense Tax Partners Financing? All of our clients automatically qualify for financing, so you can now afford expert representation and start focusing on making your life tax debt-free.
If you are unable to settle the entire tax debt at one time, Defense Tax Partners will work directly with the IRS to negotiate the most favorable payment plan. If the IRS has burdened you with an unreasonable payment plan, or is threatening a levy on your wages, bank accounts and other assets, we can negotiate a payment strategy that will accommodate your current financial situation. If you qualify, we can also have your account deemed “not currently collectible”, requiring the IRS to withhold all collection activity until you are financially able to accept a payment plan or have submitted an Offer in Compromise.
Offer in Compromise
An Offer in Compromise is an agreement between a taxpayer and the government to settle a tax liability by paying less than the full amount owed, often implemented when the entire tax liability cannot be collected. The government’s goal with an offer in compromise is to obtain what is reasonably collectible at the earliest possible time and incur the least amount of cost. There are three bases under which an Offer in Compromise may be accepted:
- Doubt as to Collectability – If the IRS believes that the amount owed can never be paid back they will be willing to take a portion of what is owed.
- Doubt as to Liability – If there is doubt that the actual debt exists, the government may accept an Offer in Compromise.
- Effective Tax Administration – Even if the IRS or State feels the tax owed is valid and that you have sufficient assets and income to pay the entire debt, the taxpayer can show that due to exceptional circumstances, it would be unfair and inequitable to demand full payment of the tax debt: for example, such a collection could put you and your family on the street.
If an offer and compromise is accepted, payments can be made in one of three ways:
- Cash within 90 days of approval
- Short term deferred payment plan
- Long term payment plan
The professionals at Defense Tax Partners have successfully conducted thousands of cases, and will present the best Offer in Compromise, giving you the opportunity to settle the liability for the lowest amount possible.
Abatement of Penalties and Fees
For those that have the ability to pay their tax debt in full, IRS tax penalties and interest that make up the bulk of the delinquent tax bill are often the main causes of an unmanageable tax problem. However, several IRS provisions help taxpayers get tax debt relief. The most common reasons for penalty abatement include:
- Reasonable Cause
- Correction of Service Errors
- Administrative Wavers
- Statutory Exceptions
Under reasonable cause, the IRS will first thoroughly assess the initial situation that resulted in penalties. Relief will be granted on the basis of reasonable cause if the taxpayer exercised ordinary business care and prudence in determining their tax obligations but was unable to comply with those obligations. Other factors that can determine penalty abatement are:
- Unable to Obtain Records
- Serious Illness
- Loss of Household Provider
- Incorrect Advice from Tax Advisor
- Incorrect Advice from Service
- Natural Disasters
- Service Error
If you qualify we can assist you in getting some or all of your penalties and interest removed, or even in obtaining refunds directly from the IRS.
When the IRS or State has failed repeatedly to collect taxes, they begin to seize assets. This process is called a “levy.” The taxing authorities can legally seize bank accounts, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. Virtually anything of value can be seized to satisfy the outstanding debt.
At Defense Tax Partners we understand how hard you have worked for your money, your possessions and the security of your family, and we will react immediately to remove or block seizure of your assets. In many cases, Defense Tax Partners can get a lien or levy released in 48 hours.
When the IRS or State has failed repeatedly to collect taxes and they attach wages it is termed as wage garnishment. Garnishment rules vary, but the IRS will take a portion of your paycheck each pay period and apply the amount garnished to your outstanding tax debt.
Having your wages garnished is a stressful and financially debilitating experience. Defense Tax Partners’s team of attorneys will immediately contact the IRS to attempt to release your wages from garnishment, and then structure a solution to resolve the underlying tax liability—whether that is an Offer in Compromise, Statute Expiration, currently non-collectable or an Installment Agreement.