What constitutes IRS tax debt relief? As a tax attorney, I think the following constitute IRS tax debt relief: formalizing an agreement to resolve an outstanding tax debt, resolving a tax audit in a manner favorable to a taxpayer or with no change to the taxpayer’s tax return and saving a taxpayer money through a successful penalty abatement with the IRS or tax settlement with the IRS. In short, whenever a tax matter with the IRS is resolved and/or the taxpayer is able to be relieved of some of the tax debt they owe this should constitute IRS tax debt relief, right? These issues are discussed in greater detail in the article and video below. Please feel free to contact The McGuire Law Firm at anytime to speak with a tax attorney about your tax matters and questions.
What types of agreements are available to resolve a tax debt? In addition to an installment agreement whereby you make monthly payments to the IRS, you may be a candidate for an offer in compromise, which can be considered a settlement with the IRS. Yes, you pay the IRS an amount that is less than the total amount due for a resolution of your tax liability. Additionally, the IRS may agree to place your liabilities in a currently non-collectible status. While in this status, the IRS will not actively enforce collection of the debt, and the collection statute will run.
If you are being audited by the IRS, relief may come in the form of the IRS issuing a no change letter meaning they agree with your return and are not going to issue a notice of deficiency, or the IRS agrees not to currently audit other periods.
In terms of lowering your tax bill and saving money, a potential for big relief comes in the form of the IRS agreeing to abate penalties. If you can establish causation for the accrual of penalty and such causation is deemed reasonable cause for the abatement of penalties, the IRS can waive all or portions of the tax penalties that have been assessed.
If you are being audited by the IRS or owe taxes to the IRS please consider contacting The McGuire Law Firm to speak with a tax attorney. A free consultation is offered to all potential clients and a tax attorney is likely to be able to help you resolve the matter.