"The Internal Revenue Service is a powerful and historically unrelenting creditor. The Internal Revenue Code grants the Service extraordinary powers to enforce its tax liens administratively."
If you are unable to pay all of your tax debts at once, you may be qualified to set up a payment plan with the IRS. Our team can help you determine whether you or your loved ones qualify for an installment agreement.
Offers in Compromise (OIC)
If paying your tax debt can cause significant financial difficulty, our team can negotiate with the IRS to settle your tax liabilities for less than the full amount owed. To qualify for OIC, the taxpayer must file all tax returns and paid all required estimated tax payments for the current year.
Most taxpayer may not qualify for OIC if the IRS determines that the taxpayer has the ability to pay. The IRS measures taxpayer’s ability to pay by the reasonable collection policy (RCP). The RCP includes taxpayer’s asset, such as real property, bank accounts, automobiles and other properties. The IRS may accept an OIC if there is doubt as to liability, doubt as to collection, and effective tax administration.
Innocent Spouse Tax Relief
Most married taxpayer file a joint tax return. When filing a joint tax return, taxpayers are jointly and severally liable for the tax and any additional interest, or penalty that arise from the joint tax return. This mean each taxpayer is legally and personally responsible for the entire tax liability even if only one spouse earned all of the income or claim improper credits or deductions. However, a spouse may qualify to get relief from being jointly and severally liable.
The Innocent spouse relief provides you from additional tax owed if your spouse failed to report income properly or claimed improper deductions or credits. To qualify for the Innocent Spouse Relief, you must have filed a joint tax return, the understatement of tax was due to erroneous items of your spouse; and that you did not know, and had no reason to know, that there was an improper claim of deductions or credits at the time the return was signed; and it would be unfair to hold you liable for the understated tax.
Currently Not Collectible
If you cannot repay your tax debt due to economic hardship, the IRS may postpone the collection process for an indefinite period and you would be placed in what is called a “currently not collectible” (CNC) status.
Generally, while you are placed in the CNC status, the IRS will not engage in collection activity. However, the IRS will still charge interest and penalties to your account. The IRS may also keep your refunds to offset your debt.
To qualify for the CNC status, you may have to file any delinquent tax returns; you may have to provide financial information regarding your income and expenses. The IRS may ask whether you can sell any assets or get a loan to offset your debt.
If you are place in the CNC status, the IRS may review your income annually to see if your situation has improved. The IRS can attempt to collect up to 10 years from the date of assessment
Bankruptcy tax relief
If paying your existing tax debt will cause significant financial difficulty, filing bankruptcy may be the only way to overcome your tax debt.
Offshore voluntary disclosure program
The IRS Offshore Voluntary Disclosure Program (OVDP) encourages taxpayers to disclosed income from offshore accounts and pay the required taxes without the threat of criminal investigation. The OVDP allows taxpayers who failed to disclose income from offshore account a second chance to get current with their tax return and who may be eligible to have their penalties reduced.
Abatement of Penalties
The Team at Mamdani Law can often convince the IRS to abate penalties assessed due to a reasonable cause for failing to file, filing late or not paying taxes.
You may qualify if you have not file a return or no penalty has been assessed for the 3 tax years prior to the year that you received the penalty; and you have filed all tax returns and paid all required tax payment for the current year.
Other administrative relief
If the IRS provide you with incorrect advice, you may qualify for administrative relief.
Collection Appeal Rights
Receiving a Collect Notice from the IRS can strike fear in any taxpayer. The IRS cannot levy your wage or garnishes with just this notice. There are two types of appeals depending on your case, the Collection Due Process (CDP) or the Collection Appeals Program (CAP).
Under the CDP, you have the right to hearing if you receive the following notices:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
- Final Notice – Notice of Intent to Levy and Notice of Your Right to Hearing
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice.
Under the CAP, you have the right to a hearing if you receive the following notices:
- Before or after the IRS files a Notice of Federal Tax Lien
- Before or after the IRS levies or seizes your property
- Termination, or proposed termination, of an installment agreement
- Rejection of an installment agreement
- Modification, or proposed modification, of an installment agreement.