IRS Tax Debt Resolution
Experienced Guidance for IRS Collection Problems
Owing more to the IRS than you can reasonably afford to pay can create significant financial uncertainty. However, full and immediate payment is not always the only available option.
Partnership Tax Advisors LLC assists taxpayers in evaluating IRS collection alternatives based on their individual financial circumstances. Two potential resolution alternatives are an Offer in Compromise and a Partial Payment Installment Agreement.
Determining which alternative may be appropriate requires careful consideration of the taxpayer's income, expenses, assets, liabilities, ability to pay, and the remaining IRS collection period.
Offer in Compromise
An Offer in Compromise (OIC) may allow a qualifying taxpayer to resolve an IRS tax liability for less than the full amount owed.
An Offer in Compromise is not available simply because a taxpayer owes more than the taxpayer would like to pay. The IRS evaluates the taxpayer’s particular financial circumstances when considering an offer.
The IRS states that its evaluation includes the taxpayer's income, expenses, asset equity, and ability to pay. Not every taxpayer will qualify.
How Partnership Tax Advisors LLC Can Help
Before recommending an Offer in Compromise, we evaluate the taxpayer's financial circumstances and the available collection alternatives.
Before recommending a collection alternative, we conduct a preliminary review of the taxpayer's financial circumstances and available documentation. Material inconsistencies or unresolved financial issues may need to be addressed before an Offer in Compromise or Partial Payment Installment Agreement can be pursued.
The objective is straightforward: determine whether an Offer in Compromise is realistically appropriate before the taxpayer commits the time and resources required to pursue one.
When an OIC appears appropriate, assistance may include evaluating financial information, analyzing potential collection alternatives, preparing the necessary financial presentation, and assisting the taxpayer through the IRS consideration process.
Partial Payment Installment Agreement
An Offer in Compromise is not the only alternative when a taxpayer cannot afford to fully pay an IRS liability.
A Partial Payment Installment Agreement (PPIA) may provide another potential solution.
Under a PPIA, the taxpayer makes installment payments even though the financial analysis indicates those payments will not fully satisfy the outstanding tax liability within the remaining IRS collection period.
This distinction can be important for taxpayers who have some ability to make monthly payments but lack the financial ability to pay the entire liability before expiration of the applicable Collection Statute Expiration Date (CSED).
A PPIA therefore deserves consideration as part of a broader IRS collection analysis rather than viewing an Offer in Compromise as the only potential form of relief.
OIC or PPIA: Which Alternative Should Be Considered?
There is no single resolution strategy that is appropriate for every taxpayer.
A taxpayer who qualifies for an Offer in Compromise may benefit from resolving the liability through an acceptable compromise. Another taxpayer may be better suited for a Partial Payment Installment Agreement.
The appropriate analysis can involve:
Income and necessary living expenses
Assets and asset equity
Outstanding IRS liabilities
Ability to make monthly payments
Remaining IRS collection period
Other relevant financial circumstances
The goal is not to force the taxpayer into a particular IRS program. The goal is to evaluate the facts and determine which available collection alternative warrants consideration.
IRS Experience Matters
Partnership Tax Advisors LLC was founded by Mark A. Silva, EA, a former IRS Revenue Agent and former IRS Headquarters Senior Policy Analyst.
That IRS experience brings an understanding of IRS procedures and tax administration to the evaluation of collection matters.
Rather than making promises about a particular outcome, Partnership Tax Advisors LLC focuses on understanding the taxpayer's circumstances, evaluating the available alternatives, and developing a practical approach for addressing the IRS liability.
Facing an IRS Tax Debt?
If you owe the IRS and are uncertain whether you can pay the liability in full, an Offer in Compromise or Partial Payment Installment Agreement may warrant consideration.
Contact Partnership Tax Advisors LLC to discuss your circumstances and determine whether one of these IRS collection alternatives may be appropriate.