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IRS Tax Debt

3 ways your attorney can help business owners with IRS Tax Debt 9-20-2016

As another tax filing deadline for businesses passes, tax debt negotiation becomes a valuable topic of discussion for those business owners who owe the IRS money. If you owe the IRS for this most recent year and/or for any years prior you may have options for  managing your IRS tax debt. We will cover three of those options.

Bankruptcy. Many people are not aware that their tax debt with the IRS may be discharged by filing bankruptcy. Eligibility for discharge under Chapter 7 or Chapter 13 of the bankruptcy code requires the debt to have been assessed by the IRS at least 3 years prior to the date of filing your bankruptcy.

Offer in Compromise. This is a program where you can settle your debt for less than what you owe.  Your attorney will negotiate with the IRS on your behalf and request for them to accept a lump sum or short payment plan for a lower amount than what is owed. This is a great option for businesses that have a lump sum of money available to send to the IRS in consideration of the reduction. Typically, you can expect the IRS to accept a 30% to 50% of the original debt as a full and final payment. 

Installment Agreement. The third option is to negotiate a payment plan arrangement which can result in a low monthly payment. This is a good stress-reducing option for those that do not have the ability to make a lump sum payment . 

There are other options available but we have found these three options to be the most successful when helping our clients eliminate their tax debt with the IRS. As every client has unique needs and circumstances, your situation deserves the overview from a caring, competent attorney with your best interests at heart. If you have IRS issues, please contact the office for assistance. We offer a full range of legal services for business owners. 

This article has been provided for informational purposes and does not constitute legal advice or create an attorney-client relationship. 


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