Want to Save up to 93% or More of What You Owe in Back Taxes and Recover Your Driver’s License? Answer the Questions Below to See If You Qualify.
Offer in Compromise is an agreement between a taxpayer and the Internal Revenue Service. Commonly referred to as an OIC, it settles a taxpayer’s tax liabilities for less than the full amount owed. In most cases, taxpayers who can fully pay their tax liabilities through an installment agreement or other means, won’t qualify for an OIC. The IRS approves an OIC application when the amount being offered by a taxpayer is the most the IRS can expect to collect within a certain window of time. While an OIC may seem like a logical option for struggling taxpayers, it is important to weigh the costs and risks associated with the application processes before making a decision. Here are three scenarios under which the IRS accepts Offer in Compromise requests:
Considered to be the most common scenario, the person filing under this category must demonstrate that he or she will likely never be able to pay the full tax obligation due to financial hardship or some other compelling reason. The IRS will consider the following set of facts and circumstances when reviewing an application:
Requests for tax relief under this scenario do not dispute the amount of tax owed, and applicants cannot qualify for a Doubt as to Collectibility offer either. This means that you own sufficient equity in assets to fully pay your tax liability, but due to special or exceptional circumstances, liquidation of those assets would create an economic hardship. The elderly and disabled taxpayers who are on fixed income often use this scenario.
If you’re interested in discovering whether or not you may qualify for an Offer in Compromise, you can access the Offer in Offer in Compromise Pre-Qualifier on the IRS official website today. This allows you to begin planning your proposal now and move forward in this long process.
As you wait for the IRS to either approve or deny your application, you are still responsible for making payments towards your tax liability. Other things to expect include the following:
If an OIC application has been accepted, the taxpayer will then be required to file all required tax returns timely and make payments detailed in Section 7 of Form 656. Any refunds received during the calendar year in which an offer was accepted will be applied to their tax liability. If an offer is rejected, taxpayers can make an official appeal within 30 days through a Request for Appeal of Offer in Compromise, Form 13711 PDF.
An Offer in Compromise involves significant amounts of paperwork, while the IRS’ processing times can be extremely lengthy. However, the Fresh Start program was instituted in 2011 and can provide taxpayers with additional relief and a more streamlined process under certain conditions. The ultimate goal with an OIC is to achieve a compromise that suits the best interests of both the taxpayer and the IRS. To be considered, you must first make an appropriate offer based on what the IRS considers to be your true ability to pay.
We understand that Offer in Compromises have a very low acceptance rate, and you may want to consider hiring a professional to help your chances of success if you feel that you may qualify. The team at Coast One is proud to have a 2018 track record of saving clients 92% or more on their back taxes when negotiating an Offer in Compromise. Give us a call today for a free consultation to see if you qualify. We promise to work with you to create the strongest case possible, and to also defend your case to the IRS. Our team understands how tax laws work and can provide expertise and keen attention to detail that you won’t find elsewhere.
Coast One allowed me to have peace again. I was in tax liability over my ears and saw no way out...
Each state has its own requirements for a driver’s license suspension. Some states require taxpayers have a total of $10,000 or more in unpaid taxes, while other states can suspend licenses for as little as $1,000 in back taxes.
Some states recognize that if the taxpayer has their driver’s license suspended, he or she cannot physically get to work. Without being able to get to work, he or she will not be able to generate income to take care of the tax liability. Therefore, some states could offer a conditional release of the driver’s license suspension so that the taxpayer may able to work and enter into a repayment agreement.
If a license has been suspended, it is best to talk to the state taxing authority about what is needed to get the suspension released. Even after the back taxes are paid in full, there could be additional penalties and fees that need to be addressed when attempting to reinstate the license. Therefore, contacting the state taxing agency is the first step to gather the information so that one can determine the best course of action.
Some would think a driver’s license suspension would be a more challenging collection method for the state agency than issuing a wage garnishment. However, suspending a license is a much easier and faster collection method than filing a wage garnishment. Additionally, a garnishment or a tax lien can be fought and overturned. Most taxpayers will be more affected by a driver license or a professional license suspension than by having a tax lien placed on their property or by a wage garnishment.
In many cases, this collection method practiced by the state will pressure taxpayers to take necessary actions to resolve their back taxes in a timely matter. It also prompts a taxpayer to call and communicate with the state agencies and come up with a repayment or a resolution plan.
In addition to a driver’s license suspension, some taxpayers may find themselves facing a suspension of their professional license. Though these cases are rare, those who have large amounts of outstanding back tax liability could get their professional license suspended, leaving them no opportunity to work.
It is always best to communicate with the state tax officials about any past due tax liability long before license suspension. You may be able to set up an affordable payment plan prior to a license suspension. If you are in a financial hardship and unable to pay your tax liability in full, some states may have an offer in compromise or various settlement programs available. In the long run, taking the necessary actions to resolve back tax liability in a timely matter will reduce the chances of a driver license and/or professional license suspension.
Even after having a driver or a professional license suspended, there is still hope for those who are willing to take care of their tax liability. An affordable repayment plan, an offer in compromise or a settlement program are possible options available that can help to resolve tax liability and get a license reinstated. If the entire process of settling a tax liability is overwhelming or too confusing, it is good to be reminded that help is available. Seek the assistance of a tax professional who has success in reducing and resolving unpaid tax liability as well as the expertise and good track record of reinstating suspended licenses.
