Offers in Compromise and Other Favorable Settlements
If you have received collection notice from the IRS in the form of a tax lien, levy or garnishment, you may feel too embarrassed to seek advice. You should know, however, that serious consequences can happen if you delay taking action. Doing nothing often only makes matters worse.
Meeting with a professional can help you take control of this often stressful situation. A sympathetic and experienced tax attorney, Ellyn Tanenberg helps individuals negotiate offers in compromise and other favorable tax settlements to resolve tax disputes with the IRS or state tax authority. From offices in Washington DC, Maryland and Florida, she assists clients worldwide, seeking solutions that minimize the anxiety they face and that help them move forward. Contact her law firm to get started.
“Your approach to this problem and patience as well as your ability to navigate through the instructions and prepare a coherent and articulate response was key.” – A client testimonial
What Is an Offer in Compromise?
An offer in compromise is an IRS settlement of tax debt for less than the amount owed. Although there is no guarantee that the IRS will grant an offer in compromise, there are special circumstances where the IRS may agree to these terms, such as:
- If the IRS can reasonably conclude it will not be able to collect the full amount of the debt owed (“doubt as to collectibility”)
- Collecting the full amount of tax debt will cause undue economic hardship to the taxpayer
- There is doubt as to the actual amount owed (called “doubt of liability”)
What Are the Benefits of an Offer in Compromise?
Offers in compromise are a very favorable way to resolve a tax debt. For one thing, in most cases, all collection activities by the IRS will cease while the offer is under consideration, though a federal tax lien may still be filed. If the offer is rejected and you appeal the decision to the IRS Office of Appeals within 30 days, collection efforts will be further suspended until a decision is made on the appeal.
Ms. Tanenberg can help you determine whether your case is eligible for an offer in compromise. If so, she will help you assemble the necessary documentation and work with the appropriate IRS representatives as needed on your behalf.
“When I contacted Ellyn I was extremely upset and fearful of my economic future after receiving an unexpected statement from the DC government for back taxes. […] Ms. Tanenberg was very thorough, and after compiling all the facts, she submitted and got approval of an offer in compromise for nearly half the amount owed.” – Client testimonial
Other Options for Settling Tax Debt
If you are unable to pay the full amount owed, or if an offer in compromise is rejected, Ms. Tanenberg can help you explore other options for resolving your tax debt such as filing an appeal or setting up a payment plan. For example, after possible reductions are made, you may be able to structure or take out a distribution from retirement savings, a home-equity line of credit or a bank loan.
Ms. Tanenberg is widely known for her attention to detail and the personalized nature of her services. Whether you are facing wage garnishment, a bank levy, liens or other tax collection disputes, Ellyn Tanenberg, Tax Attorney & CPA, can guide you through these disputes and help you put the stress of the IRS behind you.
Explore Your Options Today
To learn more about offers in compromise and other favorable tax settlements, contact the firm for a free initial phone consultation. Ms. Tanenberg’s hours are Monday through Thursday from 8:30 a.m. to 6 p.m., and Fridays from 8:30 a.m. to 4 p.m., with evening and Sunday meeting times available by request.