Tax Attorney Chicago
As a Chicago tax attorney and CPA, I prepare tax returns and offer tax relief help to my clients. First, I will investigate your tax matters and evaluate your alternatives. Second, I file any unfiled tax returns. Third, I guide clients through the tax resolution process and prepare the necessary forms.
Tax relief help often takes the form of an installment agreement or an offer in compromise (OIC).
Offer in Compromise
An offer in compromise allows a taxpayer to settle tax debt for less than the full amount owed. The three types of offers in compromise include: (1) doubt as to collectibility, (2) doubt as to liability, and (3) an exceptional circumstance.
When evaluating doubt as to collectability, the IRS considers Ability to Pay, Income, Expenses, and Asset equity.
Generally, the IRS approves an OIC when the amount offered represents the most the IRS can expect to collect within a reasonable time.
IRS Raises OIC Fees
Effective January 1, 2014, the IRS increased the fee for doubt as to collectability offers in compromise from $150 to $186. However, the IRS recently proposed increasing the cost of the user fee for filing an Offer in Compromise to $300, starting February 27, 2017.
Unfiled Tax Returns
Starting March, 2017, the IRS will not consider OIC applications if the taxpayer has unfiled tax returns. However, I will prepare all your unfiled personal income tax returns and business income tax returns.
Tax relief via an offer in compromise and the related tax issues are complex. Therefore, retain a Chicago CPA and tax attorney to represent you.