Offer in Compromise Lawyer in New Orleans
Settle Your IRS Tax Debt with the Help of a Louisiana Attorney
Are you struggling to pay your tax debt back and want to seek a fresh financial start? At Grand Law Firm, we may be able to help you with the use of an offer in compromise. An offer in compromise may be an appropriate option for taxpayers who do not have significant income or assets to use to pay back the amount owed. Our New Orleans tax debt relief lawyers can work with you to put together the necessary paperwork and documentation, making the process as seamless as possible. We're here to provide you with the dedicated help needed to overcome this difficult time.
To learn more or to request an appointment, call us at (504) 608-5208.
Qualifying for an Offer in Compromise
An offer in compromise is an option for individuals who cannot pay back their full tax liability. In order to file for an offer in compromise, you must be able to prove that paying your liability in full would create a significant financial hardship. You must also choose to pay your debt back in either a lump sum payment or a payment plan.
For the first option, you would need to pay up to 20% of the total offer amount and then pay the rest back in up to 5 payments. The second option involves sending in the initial payment with your offer in compromise application and then paying the rest back in monthly installments while you wait for approval.
The following are disqualifications for an offer in compromise:
- Anyone involved in a bankruptcy proceeding
- Anyone who is not current with filing/payment requirements
How Does an Offer in Compromise Work?
An offer in compromise may potentially help you settle your debt for much less than is owed, but it is not the only option available to you. It is important to understand that there are a number of conditions and factors which may be considered by the IRS, such as your ability to pay, your expenses, your asset equity, and your income. Our New Orleans offer in compromise attorneys can ensure that you choose the tax debt relief option which is best suited for your situation.
During the time your offer in compromise is being considered, the following may be considered:
- Collection activities may be suspended
- A Notice of Federal Tax Lien may be filed
- Payments or fees may be applied to your liability
- Your collection and assessment
- t period may be extended
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Fortunately, most offers in compromises are eventually approved so long as the amount offered is equal to what the IRS hopes to recover in a reasonable amount of time. If the IRS does not make any decision about your offer in compromise within two years, the offer will automatically be accepted.
Grand Law Firm serves clients throughout Louisiana. To discuss your needs during a free consultation, contact us at (504) 608-5208.