Estate & Tax Law: Offer in Compromise
If you have incurred tax liability beyond your ability to pay, you may submit to the IRS an Offer in Compromise. These can be based on any one of the following factors:
- Dispute as to the validity of the tax debt;
- Dispute as to the ability of the taxpayer to pay the debt; and
- Effective tax administration
At Case & Dusterhoff, LLP we handle all types of Offers in Compromise, and we will provide honest and accurate analysis as to whether or not you are eligible for an Offer in Compromise. If you dispute the amount you owe to the IRS, we can assist you in preparing a defense to what the IRS claims you owe. Often times, this requires a determination from a US Tax Court Judge, a neutral magistrate who does not work for the IRS, as to the validity of your tax debt. We are able and willing to hold the IRS accountable for any miscalculation or wrongful assessment of a tax liability.
In order to determine if you can pay your tax debt, the IRS takes your monthly discretionary income, multiplies it by sixty, and adds that number to the value of all of the assets you own. Simply put, the IRS determines your tax liability to be the amount of discretionary income you will have over the next five years and the value of all of your assets. If that amount is less than what you owe, the IRS will agree to lower your tax bill.
Offers in Compromise are very complicated, and most of the time require at least one appeal in order to be administered properly. You need a tax professional to assist you in the preparation and administration of your Offer in Compromise.
Please contact us today to determine if you are eligible for an Offer in Compromise for your tax debt.
At Case & Dusterhoff, LLP, Offers in Compromise are handled by Alex Golubitsky.