Options to Settle Tax Liabilities

Options to Settle Tax Liabilities

Living with substantial tax debt is stressful and overwhelming, yet many individuals take no action because they do not see any viable solutions. However, if you have tax liabilities, doing nothing is the worst course of action. If the IRS or state taxing authorities do not yet know about your delinquencies, they eventually will. And if you do not attempt to resolve your tax debt now, you could face both civil and criminal penalties later. The best possible action is to consult with an experienced tax lawyer.

Serious Tax Issues Require Serious Legal Representation

If you have significant tax liabilities, Terrence A. Grady & Associates Co., L.P.A., can help you explore many options for resolving your debt, including:

  • Offers in compromise
  • Installment agreements
  • Partial payment installment agreement
  • Innocent spouse relief
  • Penalty abatements
  • Currently not collectable
  • Bankruptcy Options (yes, income tax liabilities can be discharged in bankruptcy)

There are numerous factors which will determine eligibility for each option, including the nature of your outstanding tax liabilities and your current financial situation. While anyone with tax debt can benefit from qualified legal advice, those with more than $75,000 of unpaid taxes should seriously consider retaining a tax attorney.

Our Approach to Resolving Your Matter

Our lawyers work quickly to develop a relationship of trust with our clients. By fully understanding our clients’ financial condition and hardships, we are able to develop realistic and personalized repayment plans. Unlike many of the mass-marketing firms, we do not waste our clients’ time or resources by suggesting unavailable or unworkable plans. Our combined backgrounds in taxation and litigation and our vast collection representation provide our clients with the professional and competent counsel they need to effectively and efficiently deal with their tax liabilities.

Unpaid Taxes and the Statute Of Limitations

After 10 years from the date of your tax liability assessment, the IRS cannot take any additional collection actions without filing a lawsuit in federal district court. However, there are some actions, such as a bankruptcy, collection due process appeal, or an Offer in Compromise filing, that may extend the amount of time the IRS can collect against an outstanding tax liability. Accordingly, taxpayers with substantial tax debt must be fully aware of the options available for relief of these liabilities but also aware of other ramifications relating to a specific remedy.

A Note about the Fresh Start Initiative

The IRS made recent changes through the implementation of its “Fresh Start Initiative” that makes it easier for delinquent taxpayers to qualify for installment agreements and allows for more flexible terms in the Offer in Compromise program. While these changes have brought much needed relief to thousands of individuals, it is still important to consult with a tax lawyer regarding the best options for your specific circumstances.

Contact Our Ohio Lawyers

Learn how our attorneys can help you explore options to settle tax liabilities. Contact our Columbus law firm to schedule an initial consultation.