If you cannot pay the full amount of your tax liability for the year, the IRS gives you several options to pay it off over time or reduce the amount of the outstanding liability. If your tax liability remains unresolved, I will be glad
to discuss the two options described below with you.
For taxpayers who did not pay in full by April 18, an installment agreement may be appropriate. As your tax preparer, I can file forms with the IRS to request that you be put on an installment plan.
Offers in Compromise
The IRS recently expanded the Offer in Compromise program, which now covers taxpayers with annual incomes of up to $100,000 and tax liabilities up to $50,000. If you meet certain income and asset requirements, you may be able to compromise your tax liability with the IRS by making an Offer in Compromise.
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. It is subject to acceptance based on legal requirements. Generally, the IRS will not accept an offer if it believes the liability can be paid in full as a lump sum or through a payment agreement. Prior to approval, the IRS examines the taxpayer's income and assets to determine the taxpayer's ability to pay.