Administrative Remedies For Your Tax Controversy: Attorney Joseph Pearman Will Help

Below are summaries of commonly utilized federal administrative remedies for tax collection issues. Note that both Indiana and Illinois offer similar remedies, although they may not be as favorable to taxpayers as those at the federal level. Taxpayers must meet certain criteria to be eligible for any of these remedies. Joseph Pearman, Attorney at Law, can help you determine what options might apply in your case.

Penalty Abatement

Depending on the situation, taxpayers may have penalties fully or partially abated. There are three types of penalty abatement: first-time abatement, reasonable cause abatement, and re-designation of failure to deposit penalties for employment taxes.

Currently Not Collectible

Should a taxpayer lack the means to pay, the IRS can classify the total balance due as uncollectible.

Short-Term Extension To Pay

The IRS can provide up to 180 days for taxpayers who need a short period to arrange payment of the full balance due.

Long-Term Extension To Pay

For those requiring more than a short-term extension to pay the full balance due, the IRS has the authority to extend the period up to 180 days or more.

Guaranteed Installment Agreement

The IRS offers a monthly payment plan for taxpayers owing no more than $10,000, provided they can pay the full balance within 36 months.

Streamlined Installment Agreement

The IRS may agree to a monthly payment plan for taxpayers owing up to $50,000.00 who can pay the full balance before the Collection Statute of Limitations expires.

Regular Installment Agreement

If a taxpayer doesn’t qualify for the Guaranteed or Streamlined Installment Agreement, the IRS may enter into a monthly payment plan after reviewing the taxpayer’s full financial disclosure.

Partial Payment Installment Agreement

When a Regular Installment Agreement won’t cover the full balance due before the collection statute expires, the IRS may agree to a monthly payment plan.

Offer In Compromise

The IRS, like any creditor, may accept less than the full payment if there’s doubt about collecting the full balance due.

Bankruptcy

Certain types of taxes may be discharged through bankruptcy, provided specific conditions are met, such as type of tax and adherence to timing rules.

Unlock Potential Solutions To Tax Problems

Understanding tax regulations calls for legal advice when the stakes are high. Whether you’re facing penalties, need an extension, or are considering more complex options such as an Offer in Compromise, there are solutions available. The key is to evaluate your unique situation and explore potential remedies at your disposal.

Don’t let tax controversies overwhelm you. Prevent liens, levies and other negative consequences of unpayable tax debts. Consider your options and take control of your financial future. Reach out for an experienced lawyer’s guidance and unlock the solutions that you are eligible for. An answer that now seems out of reach can bring you peace of mind and restore your financial stability. Call 219-224-5499 or send an email inquiry to start the conversation with an experienced tax controversy attorney.