IRS Debt Settlement Lawyers in Woodland Hills
Helping You Submit a Successful Offer in Compromise
Defending yourself against credit card companies and other private lenders is hard enough. But what happens when your creditor is the IRS? This federal agency has seemingly endless resources and can resort to drastic collection attempts without taking you to court first.
Reducing what you owe to the IRS may be difficult, but it is certainly not impossible—especially with JM Law Firm, APC on your side. We have spent years helping clients reorganize and reduce their debt through several methods of relief. We understand that every case is unique, which is why we develop fully personalized strategies from scratch to help clients accomplish their goals.
The central method of settling debt with the IRS is called the Offer in Compromise. This is an application that offers the IRS less than what you owe. The IRS generally accepts Offers in Compromise if they do not believe you can realistically pay your full amount of back-taxes. Thus, attempting to collect from you would not be worth the time and cost.
To evaluate your eligibility for forgiveness, the IRS will consider your:
- Assets; and
- General ability to pay.
To qualify, you MUST have filed all required tax returns.
Before coming to our firm, many of our clients chose not to file returns because they knew they couldn’t afford what they owed. We urge you, however, to file all returns—whether or not you can pay. This will help you avoid penalties and allow you to file a successful Offer in Compromise.
When you submit your Offer in Compromise, you will need to include your initial payment. This will either be a “lump sum cash” payment of 20% of your total offer OR the first of a series of “periodic payments” (i.e. monthly installments). However, you may meet the low-income certification guidelines, which can allow you to forego both the application fee and the initial payment.
While the IRS considers your offer, all collection activities (except for federal tax liens) are suspended, but you may need to continue making monthly payments according to your specific offer. If the IRS denies your offer, we will have 30 days to file an appeal.
Submitting an Offer in Compromise may not be a practical option for your situation. We may instead recommend bankruptcy. While bankruptcy does not typically discharge tax debt, it can allow you to get caught up on back-taxes without the immediate threat of collection actions. It can also discharge other types of debt, freeing up more of your income to pay the IRS.
We have the skills, resources, and experience needed to help you regain control over your finances. Give us a call at (818) 696-4443 or fill out our online contact form to get started. We offer same-day appointments as well as services after hours and on the weekends.
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