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Solutions to your Tax Issues

Posted by on February 21, 2018 at 4:00 PM

I think it is safe to say that we all hate dealing with tax related problems. When having to deal with the IRS, people believe they have to pay the entire amount at once. However, the entire amount is never due upfront and there are various solutions for your specific type of tax issue. It is crucial for taxpayers to know what options they have to aid them when dealing with the IRS.

Depending on the personal tax situation, we generally suggest the following solutions to our clients:

1. Penalty Abatement

You may seek relief by qualifying for a penalty abatement if you filed all currently required tax returns or properly filed an extension, have paid or arranged to pay any tax that is due, and have had no penalties for three tax years prior to the tax year in which you received a penalty or you did not previously have to file a return. A penalty abatement may be proper only if you are seeking relief from penalties for failing to file a tax return, timely pay, and/or deposit taxes when due under the Service's First Time Penalty Abatement policy.

2. Offers in Compromise

An offer in compromise permits a taxpayer to resolve his or her tax issue by negotiating with the IRS to agree to accept less than the full amount owed. We encourage the use of an offer in compromise in situations where a taxpayer is going through financial hardship.

3. Innocent Spouse Relief

If your spouse or former spouse failed to report income, improperly reported income or claimed improper deductions or credits, innocent spouse relief may provide you relief from additional tax owed.

4. Installment Agreement

An installment agreement allows you to pay off your tax debt throughout an agreed period of time by making reasonable monthly payments to the IRS. An attorney can negotiate an installment agreement with the IRS.

5. Reduction in Penalties

In specific situations, penalties may be abated or reduced.

6. Audit Representation

An audit representation is where a taxpayer is represented by a tax or legal professional on behalf of the taxpayer.

This information does not constitute legal advice or an attorney client relationship*

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