Pennsylvania
Tax Attorneys

Offers in Compromise

An offer in compromise is a potential option for taxpayers who are unable to pay their tax debt in full. The IRS evaluates various factors, such as the taxpayer’s income, expenses, assets, and overall financial situation, to determine whether accepting an offer in compromise is appropriate.

The IRS provides clear guidelines and forms for taxpayers to apply for an offer in compromise. If the IRS is unable to process the offer, they will return the application and fees and apply any payment included to the outstanding balance.

Different payment options are available, including lump sum cash payments or periodic payments, depending on the taxpayer’s circumstances. Low-income taxpayers who meet certain eligibility criteria may qualify for a waiver of the application fee, initial payment, and monthly installments while the IRS reviews the offer.

If an offer in compromise is rejected, the taxpayer has the right to appeal the decision within 30 days using the appropriate form, Request for Appeal of Offer in Compromise (Form 13711). The IRS Independent Office of Appeals can provide additional assistance during the appeals process.

It’s important to note that the process of submitting an offer in compromise can be complex, and it may be beneficial to consult with a qualified tax attorney or tax professional who can provide guidance and help navigate the process effectively.

IRS Audit Defense

Tax audits can be conducted by either the state or federal tax authorities, depending on the nature and scope of the audit. Audits are carried out for various reasons, including potential issues such as excessive business expenses, home office deductions, or significant losses reported on Schedule C.

When a person receives a notice about an audit, it is common for a penalty notice to follow soon after. Seeking legal assistance promptly upon receiving an audit notice is advisable to ensure proper representation and guidance throughout the process.

For IRS audits, the general time frame for which the agency can go back and review tax returns is three years. However, exceptions may be made in cases involving major errors or fraud.

If a taxpayer requires tax debt relief in relation to an audit, it is important to work with a reputable firm such as Anderson Bradshaw to ensure appropriate assistance and representation in dealing with the IRS. Engaging the services of experienced tax attorneys or professionals can help individuals navigate the complexities of tax audits, address any issues identified, and work towards a resolution that is in their best interest.

Innocent Spouses

Innocent spouse relief is a provision that allows an individual to be relieved of tax liability for a joint tax return when their spouse or former spouse understated the taxes owed on that return, and the individual can demonstrate that they were unaware of and had no reason to know about the errors or underreporting. Under innocent spouse relief, the tax liability is attributed to the spouse who was responsible for the underreported taxes.

This attribution should be reflected in the audit report or other relevant documentation. It is important to note that innocent spouse relief must be sought within two years of an IRS collection action.

This means that the individual must apply for relief within two years from the date the IRS initiates collection activities against them. However, it is worth mentioning that obtaining innocent spouse relief can be a complex process, and it may require gathering evidence and presenting a strong case to the IRS.

As a result, seeking legal assistance from a qualified tax professional or attorney is advisable to navigate through the application process and increase the chances of obtaining innocent spouse relief.