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IRS Collections - Offer in Compromise  

Philadelphia IRS Collections Attorney Helps Clients Settle Tax Debts

Pennsylvania Tax Violation Defense Law Firm Assists with Offer in Compromise

If you're unable to pay your taxes, it's important not to panic. If you cannot pay the full amount owed and face IRS collection efforts, you should still file your return by the deadline and pay as much as you can afford to avoid penalties and interest. You also need to speak to an IRS collection lawyer to discuss your options, which might include what is called an offer in compromise.

Offer in Compromise

An offer in compromise will allow you to settle your tax debt for less than the full amount you owe. It is a good option if you can't afford to pay your full tax liability, or if doing so would create a financial hardship for you. When determining a taxpayer's eligibility for an offer in compromise, the Internal Revenue Service will consider the following factors:

  • Ability to pay
  • Income
  • Expenses
  • Asset equity

The IRS will normally approve an offer in compromise when the amount offered equals the most they can expect to collect over a reasonable period of time. The taxpayer will be allowed to choose one of the following payment options:

  • Lump sum cash – An initial payment of 20 percent of the total offer is submitted with the application. After written acceptance from the IRS, the taxpayer will pay off the remaining balance in five or less payments.
  • Periodic payment – An initial payment submitted with the application, with continual payments on the balance remaining in monthly installments while the IRS considers the offer. If the offer is accepted, monthly payments will be continued until the balance is paid in full.

Contact Our Philadelphia Tax Violation Defense Law Firm Today

Are you behind on your federal income tax obligations, and are beginning to panic? The experienced IRS tax attorneys at Patricia M. Mayer, P.C. will examine the facts of your case and suggest options, which might include an offer in compromise. Contact our firm online or call 215-268-3373 or 877-317-9857 to schedule a free initial consultation today.


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