Arizona taxpayers who have federal back taxes due may get tax relief through the IRS Offer in Compromise Program. In some situations, you can settle your tax debt for pennies on the dollar.  Taxpayers will find more success if they use an Arizona tax attorney to assist them rather than complete the process themselves.

For a taxpayer, an Offer in Compromise represents a great opportunity to resolve tax debt and move forward. For the IRS, accepting an Offer in Compromise represents the same opportunity, but it comes with the expectation that taxpayers will begin to pay their taxes on time.

Hiring an Arizona offer in compromise attorney can help you improve the chance that your offer will get accepted. At a minimum they can review your situation and provide you valuable information that will allow you to make an informed decision.  Arizona tax attorneys can complete these tasks for you.

Arizona tax attorneys will review your situation and submit the Offer in Compromise on your behalf.  Upon submission of the offer in compromise, the IRS must verify that the offer can be processed. The offer goes through a screening process to determine if the taxpayer or taxable entity has: (1) paid the required application fee; (2) ensured that all delinquent tax returns have been filed; (3) not instigated a bankruptcy court proceeding; and (4) not been issued an audit notification.

Many Arizona offers in compromise are denied. The two main reasons that rejection occurs is because the documentation is inaccurate or incomplete or the taxpayer earns in excess of the required allowance. Your offer in compromise attorney will make sure that your filing is accurate and complete.

An Arizona tax attorney will help you get your Offer in Compromise completed accurately and will give you the greatest chance that your offer will be accepted the first time it is submitted.

Need an Arizona Tax Lawyer?

The IRS has many programs in place to assist taxpayers with back tax problems. The options largely consist of an Installment Agreement, Offer in Compromise (“OIC”), and Currently Not Collectible status.  Your Arizona tax lawyer will understand these programs in detail.

If you proceed with an Offer in compromise, you will be required to disclose sensitive financial information. Rejection rates for OICs are high, but your chances for success will increase if you work with an Arizona tax lawyer. Should your OIC be rejected, there is an appeals process.  A Currently Not Collectible option will still require full disclosure of the taxpayer’s financial situation.

Taxpayers must file Form 656 if there is uncertainty that the tax liability could be collected in full via a lump sum payment or an installment agreement. Taxpayers should file Form 656-L when they believe that the tax liability claimed by the IRS is incorrect. You are not allowed to file offers simultaneously and claim both that the tax liability is incorrect along with an inability to pay the tax liability due.

If you want any hope of success you must make sure that you stay current with all your tax filings and payment requirements, including estimated taxes and federal tax deposits. Becoming delinquent or filing late could put an end to any chance of success you may have had.

Who is the Best Tax Attorney in Arizona?

This question is not as easy as you would think.  Even tax attorneys specialize in specific areas of the tax code, including sales tax, business taxation, tax planning and strategy, etc.  The best Arizona Tax attorney is the one that can help you get your tax issue resolved and assist you with ongoing tax compliance. 

Assuming that paying your tax bill in full is not an option, there are many options available if you need IRS tax relief. You may actually find that you don’t need to do anything to resolve your back tax situation. This is because the IRS has only ten years to collect back taxes starting with the date on which the taxes were assessed. As a result, if you know that you have unpaid taxes that are older than ten years, the IRS may not be able to collect those taxes anymore.

Offer in Compromise applications are frequently denied and the Internal Revenue Service has the legal right to refuse your appeal. The Internal Revenue Service can not be sued for not accepting the Offer in Compromise from Arizona taxpayers.

Taxpayers should realize that if they have tax problems there are many options afforded to them by the IRS. Procedures have been placed in service by the IRS to address most tax problems. Just make sure that you are working with an Arizona tax attorney and understand the options available to you.