Tax Debt Services

Do you need IRS debt advice or help?

Tax Debt Investigation to Resolution in 3 Steps

Community Tax Relief created a 3 Step Program

1. Community Tax Relief will perform a formal investigation and in-depth financial analysis of all the various financial documents needed from both the client and the IRS.
2. Community Tax Relief will identify the most suitable program based on our investigation findings leading to the most optimal resolution plan for our clients.
3. Community Tax Relief will submit and negotiate the resolution proposal with the IRS that we identified in the second phase of our program. This unique 3 step approach allows our attorneys to identify key issues and understand your unique circumstances before establishing a formal resolution plan with the IRS. Thereby, we can tailor your final resolution plan specifically to your financial needs.

Once Community Tax Relief files the Power of Attorney (Form 2848) on your behalf, we will handle all IRS communications for you! Our experts have the experience and knowledge in resolving your tax situation while taking counter measures such as the release of levies, lien subordinations and the implementation of IRS Tax Resolution Plans.

Tax Debt Resolution Programs Include:

Offer in Compromise

Hardship Installment Agreements

Non-Collectible Status

Complex Installment Agreements

Streamline Installment Agreements

Penalty Abatements

Amended Returns

Audit Representation

Audit Reconsideration

And more...

There are several proposals we prepare to resolve our clients’ outstanding tax liability.

Offer in Compromise (“OIC”) : The OIC allows a taxpayer to offer the IRS as much money as they can in a relatively short period of time (usually 5-24 months) and in return, the IRS will compromise or write-off the taxpayer’s outstanding IRS liabilities. This is a rigorous and time consuming process, but the end result is extremely beneficial for our clients. We analyze the client’s current income and ALLOWABLE monthly expenses under the IRS framework as well as a net equity in assets analysis. This will allow us to determine exactly how much a taxpayer needs to offer the IRS for the OIC to succeed.

Installment Agreement (“IA”) : Installment agreement is the general program in which a taxpayer pays the IRS a monthly payment in order to pay off their outstanding tax liabilities.

Streamline Installment Agreement (“SIA”): An SIA is when a taxpayer’s ASSESSED balance is less than $25,000.00 and the taxpayer can full pay the ENTIRE balance in 60 months or less. The taxpayer does not have to provide any financial documentation as long as they are compliant, below $25,000.00, and can afford a monthly payment plan that full pays their entire IRS balance within 60 months.

Conditional Expense IA: This is used when a taxpayer has additional monthly expenses that they are paying for (such as credit cards, personal loans, 401K, etc) and must continue making these payments, but they can still full pay their entire IRS balance within 60 months. The taxpayer must provide a financial statement for this type of installment agreement and must PROVE those conditional expenses that they will continue to pay.

Stair-Step IA: With a stair-step, the taxpayer agrees to pay a set amount for 12 months and then agrees to make a larger payment for the next 48 months so that the taxpayer full pays the tax liability within 60 months. This type of IA is generally used because the taxpayer is about pay off an expense (such as a car, mortgage, child support, student loan, etc).

Traditional IA: Is a“full pay” installment agreement in which the taxpayer pays as much as they can as determined by their financial documentation for the duration of their debt.

Partial Pay Installment Agreement (“PPIA”) : This installment agreement is an installment plan that will NOT full pay the taxpayer’s IRS liabilities within the collections statute. Basically, the taxpayer provides full financial disclosure and the IRS agrees to accept that monthly payment for the duration of the statute. This agreement can offer similar savings to those of the OIC, but the taxpayer must remain on the installment plan until the statute expires.

Currently-Non-Collectible (“CNC”) : CNC status is used as a temporary resolution plan to keep the IRS from using enforced collection activity against a taxpayer. The taxpayer provides full financial disclosure to the IRS and if the taxpayer’s allowable monthly expenses exceed the taxpayer’s gross monthly income, the IRS determines that the taxpayer is suffering an economic hardship. As long as a taxpayer remains compliant and their income remains the same as it was when the CNC proposal was approved, the taxpayer can remain in this status until the CSEDs expire.

Penalty Abatement (PA): The IRS may agree to relieve some of the penalties that have been assessed if we can show reasonable cause for falling behind and due diligence in resolving the debt on your part. A penalty abatement proposal asks the IRS to remove penalties for failure to file or pay tax on time. There are two critical elements of a successful Penalty Abatement petition:
1) Reasonable cause for the noncompliance.
2) Due Diligence in resolving the tax debt. We prepare a detailed petition to
abate penalties to re-create the context in which the penalties were assessed against the taxpayer.