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Tax Lawyer > Tax Liability Compromise Lawyer 

Tax Liability Compromise Lawyer 

By the time you receive a demand for payment of taxes from the IRS, there is a good chance that you could be in serious legal trouble for not complying with the law. It is important that you do not ignore the notice, since the penalties could be severe. You could face astronomical fines and years in prison; plus, you will have to pay the tax amount due, along with interest. Being proactive is essential, especially when you may qualify to take advantage of the Internal Revenue Code (IRC) section on compromises. The law offers options to resolve your tax liability, enabling you to avoid civil and criminal sanctions.

However, reaching a compromise with the IRS is an extremely complicated process, so it is wise to work with a knowledgeable attorney. Our team at Lehman Tax Law can assess your tax situation, advise you on the best options for your circumstances, and advocate on your behalf in dealing with the IRS. Please contact us to schedule a no-cost consultation with a skilled tax liability compromise lawyer, and check out some important background information.

Offer in Compromise

As the term suggests, an offer in compromise is your proposal to settle your tax liability through an agreement with the IRS. You would be paying less than the full amount of taxes that you owe, so this option is not available in all cases of taxpayer default. However, the IRS will usually consider an offer in compromise where:

  • There is some doubt as to taxpayer liability, since you and the IRS dispute whether you owe taxes or disagree on the amount due.
  • You may not be able to pay the full tax owed, so the IRS may not be able to collect on the amount due.
  • It is in the best interests of the IRS to promote efficient, effective tax administration through an offer in compromise. Examples might be where a taxpayer would face serious economic hardship by being forced to pay or other extraordinary circumstances. 

Factors to Consider Regarding Offer in Compromise

Despite being eligible under one of the above scenarios, the IRS typically will not agree to a compromise if you are able to pay through an installment agreement other alternatives. Plus, your offer in compromise could be rejected if you are not current on filing all required returns. If you do want to seek this remedy, there are some factors to note:

  • If there is some value in pursuing collection efforts, the IRS will probably not agree to an offer in compromise that falls under this amount.
  • You must be prepared to deposit a substantial percentage of the debt if the IRS agrees to your offer.
  • By working out a compromise, you can cease all collection efforts by the IRS. 

Set up a Consultation with a Tax Liability Compromise Attorney

If you received a demand for payment or related correspondence from the IRS, please call Lehman Tax Law today to learn more about compromise options. You can set up a free consultation with Richard S. Lehman by calling 561-368-1113 or checking out our website.

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