Back Taxes Offer In Compromise

NY Tax Attorney’s – Providing Tax Help

As NY Tax Attorney’s we specialize in tax negotiation and working with taxpayers to resolve there IRS tax problems. With the proper tax relief methods applied and using IRS doctrine, we provide our clients with a compromise between what the IRS wants and what the taxpayer can comfortably deliver,  promoting compromise and compliance is the hallmark of what we do here at 101 Tax Strategies . In addition to executing offer in compromises, we resolve IRS back taxes, audits, late filings, unfiled returns, wage garnishments, bank levies, tax liens  and much more so that taxpayers nationwide can receive professional tax help and take advantage of immediate tax relief.

NY Tax Attorney's

Whether your looking for tax help,  tax relief or back taxes help, citizens across the country require IRS back tax relief  on numerous dilemmas, whether it stems from business back taxes to unpaid stock transactions to levied wage garnishments,  we as NY Tax Attorney’s know how to provide tax relief for our clients with the proper tools to satisfy most IRS demands.

The mere mention of IRS back tax liabilities spark stress and tension. The IRS has developed a reputation of foiling all would be back tax evaders. The trick is not to try to outsmart the IRS, but work within there guidelines to deliver a tax relief agreement between what the IRS wants and what the taxpayer can deliver. This is the area in which we specialize, promoting compliance, tax relief and compromise is the hallmark of what we do.

The Internal Revenue Service has been perfecting there method of tax collection since the IRS restructuring act of 1998. This initative was one of the most encompassing modernization and restructuring of any organization in modern time. The IRS utilizing advanced software applications have impeded the progress of rogue taxpayers, unfiled and fraudulent returns and wayward business. Now more than ever, taxpayers need to maintain IRS compliance or face the downside and require our expertise in tax relief. IRS Penalties and Interest are nothing to laugh at; Penalties on unreported income are 75% of the total amount of unreported Income.


The IRS does not need a court order to file a notice of intent to levy your wages. Better known as an IRS wage Garnishment this action has serious implications. The IRS has the right to garnish up to 80% of your total paycheck and any other source of income that they are aware of. The only way to stop an IRS wage garnishment is to come into full compliance by having all of your back taxes filed and filing a 433-F with the IRS and possibly a CAP Appeal to stop any further actions by the IRS. Once these measures have been executed the next step is to determine if you can be declared “Currently non Collectible” or agree to a repayment plan with the IRS


The Offer in Compromise engagement is a contract between a person or entity and the Treasury Dept or more commonly the IRS. This contract will negate the person or entities tax liabilities to the IRS for alot less then what is owed. If the IRS believes that an alternative form of payment can be obtained they will exhaust all options before engaging the Offer In Compromise for the taxpayer or entity.

In most engagements of Offer In Compromise, the IRS will reject the Offer In Compromise if the cash amount offered by the person or entity is equivalent to or greater then the reasonable amount the IRS could collect through normal IRS collection procedures. The reasonable amount of collection is the crucible that the IRS measures that a person or entity can repay through normal channels through liquidation, of homes, cars, and on hand bank accounts. The Reasonable Amount of Collection also includes future capitalization’s by the person or entity as to their ability to repay there total tax debt in a 5 year period. These considerations must be calculated before attempting to file for an Offer In Compromise with a potential collateral agreement.

From our, NY Tax Attorney’s there are three types of Offer In Compromise engagements

Doubt as to Liability

When and if there is a dispute in regards to engaging your Offer In Compromise in regards to the amount, computer error or even possible identity fraud Doubt as to Liability can be invoked. Doubt as to Liability can be invoked to negate and wipe out any and all back tax debts, and bring the taxpayer or entity into IRS compliance, this is an option that must be reviewed when submitting your Offer In Compromise.

Doubt as to Collectibility

In reference to Filing an Offer In Compromise is determined by the IRS counselor assigned to your case. To reinforce this doubt as to collectibilty the taxpayer or entity must submit there tax documents and all relevant evidence, to back up any claim so there is no doubt that the tax liability will never be repaid and the submission of the Offer In Compromise agreement is the formal document to convey this fact and acceptance by the IRS of this fact will actually negate the total tax liability, no matter how much is owed.

Effective Tax Administration

When exercising this option in the offer In compromise agreement there is no contest as to the amount owed and the IRS would have no problem in collecting the full amount, but a serious circumstance or series of circumstances has and will prevent you form making the full tax liability payment to the IRS . For this stipulation to work, the taxpayer or entity must demonstrate that undue and unfair economic hardship would result from the IRS pursuing repayment options.

An Offer in Compromise when engaged correctly is the taxpayers magic wand in making all of there tax liabilities disappear. The only catch is knowing if you qualify for this program. Most taxpayers do not. If you have the ability to pay, then you probably do not qualify for this option.

Related posts

IRS Partial Payment Installment Agreements

Timothy Hart

Offer In Compromise: New Program and Its Effects

Timothy Hart

Substitute Tax Returns

Timothy Hart