Chicago IRS Offers in Compromise Lawyer
There is a common saying that the only two certainties in life are death and taxes. While everyone knows that they are likely liable to pay some type of income tax, having the ability to pay it is not a certainty for everyone. Owing taxes to the IRS is always stressful, particularly if you are unable to pay them. Fortunately, the government agency does provide some options for those who are struggling. Below, our IRS offers in compromise and installment agreement lawyer explains what these are.
What is an Offer in Compromise?
The Internal Revenue Service (IRS) provides an offer in compromise program for people who are unable to pay the taxes they owe, or for people who would experience financial hardship if they paid the taxes they owe. Through an offer in compromise, a taxpayer can reach a settlement agreement and pay their taxes for a lower amount than what is fully owed. When determining whether a taxpayer qualifies for an offer in compromise, the IRS will consider the person’s income, expenses, ability to pay, and the assets they own.
Qualifying for an Offer in Compromise
Only eligible taxpayers can take advantage of an offer in compromise. Taxpayers can determine if they are eligible by filling out the Offer in Compromise pre-qualifying questionnaire online. There are several questions asked on the questionnaire including:
- Whether you are currently part of an open bankruptcy proceeding,
- Whether you have submitted all tax returns required of you,
- Whether you have completed the necessary tax return of someone who has employed others or who is self-employed,
- Your total bank balances,
- The amount of any equity in your home you owe,
- The value of assets you own such as stocks and bonds,
- The total income you earn, including interest or dividends, from any employment positions you hold, and
- Your expenses.
After you have provided all of this information, the IRS will determine if you qualify for an offer in compromise. People and businesses that are currently involved in an open bankruptcy case are not eligible for an offer in compromise.
Alternatives to Offer in Compromise
If you do not qualify for an offer in compromise, you may still be eligible for an installment plan. Through an installment plan, you repay all of the taxes you owe but in smaller amounts during a specific amount of time. When determining if you are eligible for an installment plan, the IRS will consider your income, expenses, assets, and determine a monthly payment amount you are liable for until you can bring your tax liability current.
Our IRS Offers in Compromise and Installment Agreements Lawyer in Chicago Can Advise On Your Case
Millions of people in the United States are behind on their taxes. The good news is that there are options. At Bentz Holguin Law Firm, LLC, our Chicago IRS offers in compromise and installment agreement lawyer can help you understand your options and guide you through the process so you have the best chance of a favorable outcome. Call us now at 312-647-2116 or contact us online to request a free consultation and to learn more.