Many taxpayers qualify for substantial reductions in taxes, interest, and penalties, but it can be difficult to know where to turn for help.
Be wary of national tax relief companies that advertise on TV promising to get you a settlement for pennies on the dollar. Hiring these companies is usually a bad idea and in some cases end up even being a scam.
If you assistance with seeking a reduction of your tax bill, releasing tax liens, or stopping tax levies and garnishments, contact a local attorney who you can meet with in person. It’s also a good idea to interview at least 2 attorneys before deciding to hire one. Many qualified and experienced tax attorneys offer a free consultation. The attorneys at Murff Law Offices are experienced in represent taxpayers before the IRS and the Utah State Tax Commission. If you’re struggling with overwhelming tax debt, call or text 801-872-4882 now to request a free consultation in any of our locations or even a consultation by phone.
How Do I Negotiate With the IRS?
You can set up an appointment with an IRS agent or representative in person or by phone. You can also hire an attorney to represent you in the negotiating process. One of the most common approaches to negotiating your tax bill is to submit an Offer in Compromise.
What is an Offer in Compromise?
An Offer in Compromise is the formal IRS process where you submit an offer to settle your tax account for less than you owe. Some key elements of an Offer in Compromise include:
- Collections are stopped while the process proceeds
- 12-18 months average processing time
- Submitting 20% of your proposed settlement offer along with your application
- Payment of a $186 filing fee
- Agreeing to pay the total remaining settlement offer within 5 payments or 6 months if accepted
- Submitting a full financial picture, including your income, assets and budget
The IRS makes decisions on Offers in Compromises based on what they believe is your ability to pay. This can be a complicated calculation based on your household income, assets (including retirement accounts), and your monthly household expenses. If you are living modestly (within the IRS national standards) and have little to no disposable monthly income left over, you may qualify for a substantial reduction of your total tax bill. This is why some people get settlements approved at “pennies on the dollar” and why some people’s offers in compromises are rejected or much less discounted. The attorneys at Murff Law Offices can analyze your unique situation and help you determine if filing for an Offer in Compromise is right for you.
Can I Stop IRS Collections, Garnishments, Locks, and Levies?
Yes, there are several ways to stop all IRS collections, including:
- appealing an IRS or State tax decision or assessment
- filing a chapter 7 or chapter 13 bankruptcy
- submitting an offer in compromise
- agreeing to a monthly installment plan