Offer in Compromise

CASE FEATURE: TAX LAW


carmela walrond

Carmela Walrond, Tax Attorney

Tax law in the U.S. is complicated. There are state and federal taxes. Taxes on income, property, capital gains, and inheritances. If you own a business, there are even more taxes to take into consideration.

If you have difficulty paying your bills and you owe federal and/or state taxes, you may qualify to file an offer in compromise (OIC) application to settle your tax debt and save thousands of dollars.

Economic hardship can be loss of business, reduction in pay, job loss, medical issues, mortgage payments in arrears or other economic hardships.

Recently, an elderly client with medical issues contacted me about a letter that she received from the IRS. It said that she owed $18,000 in taxes for two years. The IRS was in the process of proceeding with collections and bank levy.

I immediately filed an offer in compromise application to settle the debt for $200. The IRS stated that this was the third time the OIC was submitted and may not be accepted because repeated filings could be considered stalling the collections process.

The IRS examiner had many questions and requested numerous documents. I answered the questions and provided the documents, then argued that special circumstances (age and medical issues) should be used in the decision whether or not to accept her OIC.

Soon after, I received notice that, based on the documents I sent and my advocacy of special circumstances, the IRS accepted the $200 to settle her federal taxes.

If you’ve been contacted by the IRS or State agency and they’re threatening to garnish your wages or levy your bank account, I can help. The Law Offices of Spar & Bernstein PC specialize in all aspects of tax law, and we’ll fight to achieve the outcome that you want and deserve. For more information, call us at 800-529-5465 or 212-277-3636, or visit us at www.lawsb.com.

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