Washington
Tax Attorneys

Offers in Compromise

The offer in compromise (OIC) program is administered by the Internal Revenue Service (IRS). An offer in compromise allows individuals to settle their tax debt for less than the full amount they owe, taking into consideration their ability to pay, income, expenses, and asset equity.

The IRS will evaluate an offer in compromise based on whether the offered amount represents the maximum they can expect to collect within a reasonable timeframe. To be eligible for an offer in compromise, individuals must have filed all required tax returns, made estimated payments, not be involved in an open bankruptcy proceeding, have a valid extension for the current year’s return, and have made tax deposits as an employer for the current and past two quarters.

If the IRS is unable to process an offer in compromise, they will return the application, application fees, and any offer payments included, applying the payments to the outstanding balance. There are different payment options available, including a lump sum cash payment or periodic payments.

Individuals who meet low income certification guidelines do not have to submit an application fee, initial payment, or make monthly installments while the IRS reviews the offer. In case an offer is rejected, individuals have the right to appeal within 30 days using the Request for Appeal of Offer in Compromise, Form 13711, and the IRS Independent Office of Appeals provides additional assistance.

It is important to note that the offer in compromise process can be complex, and seeking professional guidance, such as consulting with a tax attorney at Anderson Bradshaw, can be beneficial in navigating the process and increasing the chances of a successful outcome.

IRS Audit Defense

The Washington Department of Revenue does conduct audits to ensure compliance with state excise taxes. These audits are aimed at determining whether taxes were reported and paid correctly. It is true that some audits may involve the IRS, particularly when federal tax issues are involved. Audits can be triggered by various factors, such as claiming excessive charitable donations, reporting substantial losses on a Schedule C, or deducting an unusually high number of business expenses.

When you receive an audit notice, it is important to take it seriously and seek legal assistance promptly. Notices about audits are often followed by notices about penalties, so having legal representation can help protect your rights and interests during the audit process.

For IRS audits, the general time limit for going back and reviewing tax returns is three years, but there can be exceptions for significant errors or fraud. It’s crucial to understand the specific rules and limitations that apply to your situation.

Anderson Bradshaw is a reputable firm that understands tax audits, and you should carefully evaluate and choose a qualified attorney who specializes in tax law and has experience with audits. They can guide you through the audit process, help you provide evidence of compliance, and protect your rights and interests.

Innocent Spouses

Innocent spouse relief is a provision available to couples who file joint tax returns and meet certain criteria. It allows a person to avoid being held responsible for additional taxes when their spouse understated the taxes due on the joint return, and they were unaware of the mistake.

Underreporting of taxes is attributed to the spouse who was responsible for the error, and this attribution should be reflected in the audit report. To qualify for innocent spouse relief, the filing spouse must demonstrate that they had no actual or constructive knowledge of the understatement and that it would be unfair to hold them liable for the tax debt.

It is important to note that people must seek innocent spouse relief within two years of an IRS collection action. This is a complex and often challenging process, and having legal representation is highly recommended to navigate the requirements and present a strong case.

Consulting with a qualified tax attorney at Anderson Bradshaw who has experience in innocent spouse relief cases can provide valuable guidance and assistance throughout the process. They can help assess your eligibility, gather the necessary documentation, and advocate on your behalf to seek relief from any undue tax liability.