Los Angeles, CA asked in Tax Law for California

Q: What is the quickest way to settle a tax debt. I owe about $25000 to the IRS, and am having trouble paying it.

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2 Lawyer Answers
Michelle D. Wynn
Michelle D. Wynn
Answered
  • Tax Law Lawyer
  • Melbourne, FL

A: You would want to consider an Offer in Compromise based on Doubt as to Collectibility. This would allow you to settle your tax liability for less than the full amount that you owe, but only if you qualify. You can look at the IRS Form 656 Booklet for more information and you may also want to try the IRS's pre-qualifier tool.

However, successfully seeking an Offer requires that you follow the IRS's rules regarding allowable expenses and it is absolutely essential that you provide all of the requested supporting documents in an organized fashion clearly supporting the income and expense figures you list in the 433-A (OIC). I would recommend seeking help from an experienced tax professional who has had success with offers in the past. Avoid anyone who simply says they can get you an Offer or can settle your tax debt without carefully reviewing your financial situation - they are likely scammers who will take your money and never take the right steps to get you an offer.

Zaher Fallahi
Zaher Fallahi
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: Since you have not provided any details, consult a tax attorney, who may get an offer-in-compromise, if eligible or an installment plan for you. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA.

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