- What is Tax Settlement?
- Offer In Compromise FAQ
- Tax Settlement Video
- Tax Settlement Fees
- Why Wadhwani & Shanfeld for Tax Settlement?
What is Tax Settlement (“Offer in Compromise”)?
An Offer in Compromise is a process created by the IRS and State taxing authority to allow taxpayers to settle their taxes for less than they owe. Although it is a great tool for reducing income taxes, the circumstances must be right for taxpayers to succeed.
Offer In Compromise FAQ
Q: Why would the IRS settle with me on my back taxes??
A: A settlement with the IRS or a State tax entity, known as an “Offer in Compromise” can be accomplished under three different circumstances:
- Doubt as to Collectability: This means that there is doubt that the taxpayer would ever be able to pay off the entire amount of tax owed before the statute of limitations expires on the tax liability. This is the most common grounds under which an OIC is submitted.
- Doubt as to Liability: There is legitimate doubt that amount of taxes owed is correct.
- Effective Tax Administration: Any kind of exceptional circumstances that exist that would make the IRS consider an offer in compromise. However, this is very uncommon.
Q: Is Tax Settlement right for me?
A: The fact is that most individuals do not qualify for an Offer in Compromise (“OIC“). However, many OIC firms still take on cases that have no chance of success in order to make money for themselves, even when their clients are seeing no benefit from the representation. These firms, known as “OIC mills,“ can charge upwards of $5,000, even if your case is destined to go nowhere.
Don’t make the $5,000 mistake by retaining one of these mills. Instead, schedule a free in-office or telephone consultation with us to determine whether an OIC is the right option for you. We will be forthcoming on whether you should proceed with an Offer in Compromise or not. Our A+ rating with the Better Business Bureau is proof that we give our clients the best service, including completely honest advice, even if we lose potential clients because of it.
In determining whether you have a good case for settlement with the IRS, we look at several factors, including (1) the value of your assets, (2) your income, (3) your expenses, (4) your debt, and (5) any other hardships that prevent you from paying your tax debt. We recommend you schedule a free in-office or telephone consultation with us to determine whether an OIC is the right option for you.
Q: The OIC process
A: To begin the process of settling your IRS or State tax debt, we will help you fill out the required application and information collection statement. Here, you will provide your income information, along with supporting proof of income documents.
Once these are prepared, our office will submit the applications and confirm receipt. Given the backlog with these types of applications, it can take up to two months for us to get confirmation that your paperwork has been processed. However, once we receive confirmation of processing, we then vigorously pursue approval of your OIC.
An Offer in Compromise can take anywhere from four to twelve months to complete.
Q: What are my payment options once my offer in compromise has been accepted?
A: Once your offer has been accepted, you will have three pay off options that you can choose between:
- Lump sum cash offer, where you must pay off your whole balance at once, but in return, get a lower total payment;
- Short term periodic payment offer, where you pay off your balance over a period of time, beginning immediately upon approval; or
- Deferred periodic payment offer, where you pay off your balance over a period time of time, beginning at some point in the future.
Q: What can I expect to pay for an Offer in Compromise?
A: The IRS requires a $150 application fee for submission of an Offer in Compromise. Our fees are quoted on a flat fee basis and are based on the amount of work we believe will be required. We recommend you schedule a free in-office or telephone consultation with us to determine whether an OIC is the right option for you and to determine how much it would likely cost you.
Q: Do you service my location?
A: We service all of California, with offices in Sherman Oaks, Long Beach, Ontario, Lancaster and Los Angeles.
If it is not convenient to visit one of our offices, we can handle your entire case by phone and email! Please give our office a call for a free consultation.
Tax Settlement Video
Tax Settlement Fees
Our fee is highly competitive, and based on how complicated your case is. Beyond reasonable and competitive fees, you can also be sure we will not recommend pursuing your case unless we see it as having a good chance of success. Our A+ rating with the Better Business Bureau confirms our integrity and commitment to client satisfaction.
Please give our office a call for a free consultation to see if you have a tax settlement case that is worth pursuing, and to learn how much it might cost to do so.
Why Wadhwani & Shanfeld for Tax Settlement?
An Offer in Compromise is an extremely complex process and using an experienced attorney’s office like ours can significantly increase your chances of having your offer accepted. We have handled many Offers in Compromise, but have also advised many potential clients against pursuing an OIC. If we do not believe you are a good candidate for an offer in compromise, we will be forthcoming and advise you of the same. Moreover, we will find alternative methods for you to resolve your taxes with the IRS.
Give our office a call for a free consultation to see if an Offer in Compromise makes sense for you.
Beyond honest advice and substantial experience, we also have unique leverage as a bankruptcy law firm. While tax debts are not immediately dischargeable in bankruptcy, after they grow a little older they eventually do become eligible for bankruptcy. The IRS and State tax entities realize this, and see your retention of our firm as you taking that first all-important step towards filing bankruptcy, where they might receive nothing at all from you. Once they consider this possibility, they become much more willing to take less from you so that don’t get stuck with nothing.
To make working with our office as easy as possible, we have five convenient locations throughout Southern California. We also offer telephone consultations and can handle all of the required forms and documents via phone and e-mail.