Other IRS Resolutions and Options

Other IRS Resolutions and Options

The McGuire Law Firm has  tax attorneys with experience in resolving many many tax debts and issues before the IRS.  We have stated a few specific resolution options that may apply to your situation and be a resolution to your tax issues.  You can contact a Columbus tax attorney at The McGuire Law Firm to discuss your specific facts, circumstances and situation to see which resolutions may be available to you or apply your situation.
 
Could I Resolve My Tax Debt With Currently Non-Collectible Status?
 
You may be able to have your tax liabilities placed in a currently non-collectible (CNC) status, which can be a very good resolution for a taxpayer whether it be a short term or long term resolution.  The benefit of being in Currently Non-Collectible Status is that while you are in CNC status the IRS does not actively collect on the tax debt but yet, the collection statute on the debts continues to run.  CNC status can be used to acquire the time to later satisfy the liability or perhaps submit an offer in compromise to settle the tax debt.  A taxpayer can stay in CNC status for 12-24 months or perhaps longer.   After the status expires or if it expires, the IRS is likely to request an updated financial statement and you may be able to stay in CNC status or perhaps the collection statute on one or more tax periods has expired. 
 
Collection Due Process Hearing
 
Upon certain notices being issued or actions taken by the IRS, you can file for what is called a Request for a Collection Due Process (CDP) Hearing also known as a CDP Hearing.  The CDP Hearing will allows an appeals officer to review your due process afforded regarding the issuance of a tax lien or a threat to levy monies or seize assets by the IRS.  The appeals officer will also consider collection options that are alternatives to the IRS enforcing collection of the tax debt such as an offer in compromise or installment agreement.  You can establish formal agreements through the appeals office during the CDP Hearing.  Under most circumstances requesting a CDP Hearing will acts as an automatic stay or hold on enforcement and bars the IRS from seizing assets such as a bank levy.  Once you request the hearing, an appeals officer is assigned and a hearing or conference date is scheduled during which you can propose a resolution to your tax liability.  A Columbus tax attorney at The McGuire Law Firm can file for your hearing request, and conduct your hearing with the IRS appeals office.
 
Penalty Abatements
 
As you may know, there are many penalties the IRS can assess when you file a return late or do not timely pay tax.  For example, the failure to file penalty accrues at 5% per month up to 25%!  Even if a tax return is timely filed but tax is still owed, the IRS assesses the failure to pay penalty, which accrues at .5% per month up to 25% over a 50 month period if the tax remains unpaid.
 
Good news though! The penalties assessed by the IRS can be abated (waived) if you can establish reasonable cause, which is in short causation for the issue that created the penalty.  Our Columbus tax attorneys can review the tax penalties you’ve been assist, discuss the facts surrounding the penalties and if causation exists, prepare, submit and negotiate a potential penalty abatement with the IRS.
 
Contact The McGuire Law Firm to speak with a Columbus tax attorney and schedule your free consultation.