What are my rights when owing back taxes - Tax lien

It is commonly feasible to wipe your tax slate clean at a massive discount. If you qualify for something called the offer in compromise, referred to as an "offer" or "OIC," the IRS has been known to accept as little as 1% of the amount owed on a tax liability and call it even.

There is no legal right to have a convincing tax liability reduced by the IRS -- it is entirely a matter of govt discretion. In all but a few instances, however, the IRS must at least give a properly submitted OIC fair consideration. Unfortunately, less than 1/2 of the OICs submitted are accepted by the IRS, although you do have a right to take a declined OIC to the IRS Appeals Office.

The first reason to hire a professional is to take the mystery out of the process.

In a usual collection case, the solution is an installment agreement or an Offer in Compromise. In order to do either of these, the IRS will use a set of formulas to establish how much you can pay every month. If you are not familiar with these formulas, you could end up showing a capability to pay greater than what you actually have. Don't expect the IRS to identify your mistake!

A usual engagement to agree an installment agreement costs from $350 to $700. If you made a $200 each month blunder on the forms -- then hiring us would pay for itself in just about 3 months. Otherwise, you could end up paying the extra $200 per month for years and years. If you make a $200 error on an Offer in Compromise -- it may cost from $9,600 to $12,000 relying on the way in which the Offer is to be financed. A standard Offer engagement costs less than one tenth of that. Is it actually worthwhile to save a hundred bucks up front?

FAQ: what are my rights when owing back taxes
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