Raleigh Offer in Compromise Lawyers

An offer in compromise is a practical solution for individuals who owe the Internal Revenue Service (IRS) more money than they can ever hope to pay back. To be approved for an offer in compromise, the IRS will review all of your assets, sources of income, debts, and liabilities. Using an elaborate formula, the IRS will then determine an amount that you are expected to pay. If you are facing an offer in compromise from the IRS, a qualified Raleigh offer in compromise attorney from Bradford Law Offices may be able to negotiate a lesser amount on your behalf.

If a settlement can be reached, a payment plan will be developed, often to the advantage of the person who owes taxes. Once this plan is agreed upon by both parties, the offer in compromise will be considered a success, and the taxpayer will return to good standing with the IRS. This process requires the taxpayer to pledge five years of compliance, and they will be expected to file all returns and pay all liabilities on time to be forgiven.

You don’t have to accept the consequences that come with delinquent taxes without discussing the situation with Bradford Law Offices first. We have experience helping people like you who need to negotiate with the IRS, and we have the knowledge you need to develop a plan that works for you. An offer in compromise can be a massive relief for individuals facing large amounts of tax debt, but the process can be complicated. The reason so many people trust Bradford Law Offices is because we care about our clients and work tirelessly on their behalf. Call us at (919) 758-8879, chat with us online, or fill out a contact form to schedule a free consultation.

Why You Need a Lawyer

The Internal Revenue Service is one of the most powerful federal agencies of the United States government. The negotiation process for an offer in compromise depends on how well you present your situation to the revenue officer and file your first documents, and it may require further discussions with an appeals officer with the IRS. The entire process can take over one year to complete, during which time penalties and interest will continue to accrue. With so much at stake, it is wise to seek counsel from a legal professional who will do their best to protect your interests.

Why Choose Bradford Law Offices?

For over 25 years, Bradford Law Offices has been helping Raleigh families resolve their tax issues through professional mediation and intense negotiations. We understand how important it is for taxpayers to be in good standing with the federal government, and we will fight aggressively to protect your rights. Call us today at (919) 758-8879 to schedule a free consultation. You can also chat with us live through our website or fill out a contact form for more information.

How an Offer in Compromise Works

Bradford Law Offices is familiar with the federal tax procedures involved with submitting an offer in compromise to the IRS. The application requires the taxpayer to declare all of their financial assets and revenue, including specific property that may influence the decision to grant an offer in compromise. If you are facing a seemingly insurmountable mountain of tax debt, we are prepared to discuss the benefits and risks of pursuing an offer in compromise with you. To qualify for an offer in compromise, the applicant must meet specific criteria:

  • All tax returns have been filed and are current.
  • Estimated tax payments for the current fiscal year have been paid.
  • Federal tax amounts for the present quarter have been deposited.

Some circumstances prevent individuals from pursuing an offer in compromise. To have a successful experience, it is critical that you:

  • are not currently filing for bankruptcy;
  • properly filed all federal tax returns;
  • submitted payroll tax returns and deposits for the previous two quarters;
  • pay the application fee;
  • submit all necessary paperwork on time; and
  • maintain the current estimated tax withholdings for the current fiscal year.

If you meet the criteria above, then you may be eligible to submit an offer in compromise. However, a considerable amount of offers in compromise are initially rejected because the paperwork is not filed correctly. The IRS will not process any requests or offers until all of the necessary paperwork has been submitted and filled out.

The Different Types of Offers in Compromise

Assuming you qualify to make an offer in compromise, the IRS may accept one of three different types of arrangements. To assess the best approach, a qualified attorney will need to review the details surrounding your situation. The three arrangements are as follows:

  • Doubt as to Collectibility: This is the most popular solution and the easiest to get approved. The IRS will perform an in-depth assessment of your financial situation to determine a Reasonable Collection Potential, which is the amount the IRS believes you can repay based on their standards. If you have significantly more assets than tax debt or a high mortgage, then you may be denied an offer in compromise.
  • Doubt as to Liability: This offer in compromise if for individuals who believe the amount they owe is not accurate. Situations that may qualify for this type of offer could be improper audit results or tax returns that were not filed correctly. This is usually only considered an option as a last resort for individuals with significant tax debt after a claim for a refund has been denied by the IRS.
  • Effective Tax Administration: This type of offer is essentially an attempt to negotiate some form of relief after you have been denied a Doubt as to Liability Offer in Compromise. Individuals who qualify for this arrangement may have enough money to pay the taxes they owe, but only if they accept undue economic hardship as a result. This is a rare form of compromise, and you will need to convince the IRS that extraordinary circumstances are preventing you from paying the amount of tax debt that you owe.

Contact Bradford Law Offices Today

If you are overwhelmed by the taxes you owe to the IRS, you may be able to qualify for debt relief through an offer in compromise. This process is complex, and the penalties are stiff if your application is denied. Turn to the Raleigh tax debt relief attorneys at Bradford Law Offices to get the help that you need at this important time. Schedule a free consultation by calling (919) 758-8879, chatting with us live, or by filling out a contact form.

Written By: Danny Bradford Last Updated: June 22, 2022