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San Antonio, TX Tax Agent for Offers in Compromise

Corpus Christi tax help for offers in compromise

Enrolled Tax Agent for Money Owed to the IRS in San Antonio and Corpus Christi

Owing money to the Internal Revenue Service (IRS) can create many different problems for taxpayers. If a tax audit finds that an individual or business owes taxes, or if a taxpayer is facing penalties for failure to file tax returns or failure to pay back taxes, they will typically be required to pay the amount owed in full, and if they do not make the required payments, the IRS may use wage garnishment or tax liens to collect what is owed. Fortunately, taxpayers may be able to avoid these issues by making an offer to the IRS, known as an "offer in compromise," to pay less than the total amount owed.

At E. Villanueva & Associates, Inc., we help individual taxpayers and businesses resolve a wide variety of tax concerns. Whether you owe money to the IRS, wish to dispute a claim that you owe taxes, or need to make sure your taxes are filed correctly, we can provide the tax help you need. Ed Villanueva formerly worked as an IRS agent, and with more than 35 years of experience in tax-related matters, he can help you find solutions that will minimize your financial burden and ensure that you can meet your ongoing tax requirements.

Reasons for an Offer in Compromise

A taxpayer may make an offer to the IRS to settle their tax liabilities without paying the full amount they owe. The IRS allows taxpayers to make offers in compromise for one of the following reasons:

  • Doubt as to liability - A taxpayer may dispute the amount of taxes owed, or they may challenge the existence of the tax debt altogether. This option may be used if a taxpayer discovers that an error was made in a previous tax return, but they are unable to file an amendment to the return because more than three years have passed since the return was filed. When making an offer in compromise based on doubt as to liability, a taxpayer will need to provide documentation supporting their claims, and they must offer to pay back at least some of their tax liability.
  • Doubt as to collectibility - A taxpayer may agree with the IRS's assessment of the amount due, but they may claim that they do not have the financial resources to pay back the full amount. When making this type of offer in compromise, the amount of the offer may be based on the total value of the assets they own, including bank accounts, real estate property, and vehicles, as well as their future disposable income that will not be used to pay living expenses.
  • Effective tax administration - If there no doubt that a tax debt is legitimate, and the taxpayer has the financial resources to pay the amount owed, the taxpayer may still be able to make an offer in compromise based on the claim that paying the full amount would cause financial hardship or that there are exceptional circumstances. For example, a taxpayer who is retired and has fully paid off their home may have large tax debts, but even though they own assets that could be used to pay the IRS, a smaller offer may be accepted to avoid displacing the person from their home.

An offer in compromise may be paid as a lump sum, which may consist of a single payment or five or fewer payments paid over the five months after the offer is accepted. Taxpayers may also make a periodic payment offer, in which monthly payments will be made over a period of six months to two years. If an offer in compromise is accepted, a taxpayer will be required to follow all of the terms of the offer, and they must file tax returns and pay taxes on time over the next five years. The IRS will keep any refunds owed to the taxpayer for the year in which the offer in compromise was accepted, and that amount will be applied to the taxpayer's total tax debt without affecting the amount of the accepted offer. If the IRS rejects an offer in compromise, a taxpayer may appeal this decision through the IRS Office of Appeals.

Contact a San Antonio Tax Consultant

If you owe money to the IRS, the Tax Liability Consultants of San Antonio and South Texas can help you make an offer in compromise. We will review your finances to determine what you are able to pay, and we will advise you on the type of offer that is most likely to be accepted by the IRS. During your case, we will make sure the right information is provided to the right people, ensuring that you will be able to resolve your tax debts in a way that protects your financial stability. Contact us and schedule a free consultation today by calling 210-382-9015. We assist with tax debts and other tax-related issues in San Antonio, Corpus Christi, and areas across South Texas.

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