Settle Your IRS Debt with Law Offices of Nick Nemeth
  • July 11, 2017
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IRS! The name itself is enough to send shivers down the spine of American taxpayers. The federal tax collecting body uses various methods such as wage garnishment, seizing personal assets, and placing liens on property, to recover tax debts. It is often cast in bad light and taxpayers often consider its agents to be government bullies. The IRS, however, only takes such extreme measures after exhausting all other options, and is often willing to work with taxpayers to help them settle their tax debts.

In this post, we talk about a number of tax relief methods taxpayers can use to settle their debts at lesser amounts than what they owe. Take a look.

1. Offer in Compromise

Offer in compromise is one of the many IRS relief methods that eligible taxpayers can use to reduce and settle outstanding tax payments. To qualify for this IRS tax relief help, you must have filed your tax returns and honored the required estimated tax payments for that quarter. In most cases, the amount offered by a taxpayer must be equal to or greater than the reasonable collection potential, which includes the amount that can be obtained by selling their assets. The IRS agrees to an OIC on three grounds:

  • There is a confusion regarding the lawful outstanding amount.
  • The value of assets you own is less than the amount you owe.
  • The payment (in full) would create economic hardships for you.

Tax relief attorney at the Law offices of Nick Nemeth has years of experience in negotiating offer in compromise agreements for taxpayers and suggesting ways to secure tax debt relief under the program.

2. “Not Currently Collectible” Program

Taxpayers who have little or no money after paying rent, utilities, buying groceries, and other essential living expenses, can apply for relaxations. The IRS declares such individuals as “Not currently collectible” and stops all efforts to recover the outstanding tax amount. To inform creditors about the amount owed, the IRS may file a Notice of Federal Tax lien that will reflect in the taxpayer’s credit report. The period that the taxpayer stays on list will primarily depend on how quickly their income situation improves. At the Law offices of Nick Nemeth, we know how the “Not Currently Collectible” program works and have helped many taxpayers qualify to receive benefits under the program.

3.Innocent Spouse Tax relief

It is common for married couples to file their taxes jointly. Many times, however, one of the spouses forgets filing their income, which can increase the tax liabilities for their partner. Such taxpayers can request Innocent Spouse Relief. If you are eligible, the IRS will not pursue you for penalties and interests. To access this benefit, you must prove that you were unaware of the understatement (that arose due to your spouse’s failure to report their income, or claiming improper deductions) at the time of signing the tax return. The Law offices of Nick Nemeth is a team of experienced tax relief professionals that understand how Innocent Spouse Tax Relief works, and provide comprehensive support to taxpayers seeking exemption under the program.

4. Partial Payment Installment Agreement

Taxpayers with a lower reasonable collection potential than their outstanding tax liabilities can seek relief under the PPIA program. The IRS reduces the total payable for eligible individuals that they are required to pay through a series of monthly instalments. To qualify you must fulfill these criteria:

  • Must have filed and paid taxes for previous years in full.
  • The outstanding amount must be more than $ 10,000 (including penalties, and interest).
  • Should not have been in bankruptcy or accepted an offer in compromise.
  • Must not own assets. Taxpayers who have non-marketable assets, insufficient or inaccessible assets (not enough to get a loan), can also qualify.

5. Abatement

The IRS levies penalties for every day past your taxes’ due date. Penalties, on an average, account for 15-25 percent of the total tax balance. Taxpayers availing this benefit will be exempt from paying late fines and penalties but will have to pay the principal amount. To qualify, you must prove that certain unavoidable circumstances, such as going through a divorce, a death in family, severe illness, or unemployment, forced you to default on your payments.

Summing up!

Taxpayers looking to use these programs need the services of a qualified and experienced IRS tax relief lawyer who can guide them at every step of preparing and presenting their case. The Law Offices of Nick Nemeth provides tax debt relief services, including helping taxpayers complete the necessary paperwork and negotiate with the IRS on their behalf. To learn more about our services, fill out our contact form or call us at (972) 426-2553 to get a free special report.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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