tax relief

Can You Request the IRS Waive Penalties Based on Medical Hardship?

February 14, 2017 | by Dennis N. Brager

The IRS may offer penalty relief for taxpayers who can show a reasonable cause for failing to file tax returns or pay taxes. IRS penalties can be waived in certain cases, but the IRS will examine all of the facts and circumstances to determine if a reasonable cause exists in your particular case.

A typical situation that the IRS will consider a sound reason for failing to file or pay taxes is death, serious illness, incapacitation, or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family. If you owe a substantial amount of IRS penalties, you may want to consult with a tax attorney.

Facts Need to Establish Reasonable Cause Due to Medical Hardship

Why You Should Consider an “Offer in Compromise” to the IRS

February 7, 2017 | by Dennis N. Brager

An Offer in Compromise (OIC) is a program that allows taxpayers to settle their tax debt for a lump sum which is less than the total amount owed. The IRS will look at your ability to pay, income, expenses, and assets to determine how much they are likely to recover from you. If the IRS is convinced that you are offering them more than they can reasonably expect to recover from you, they may accept your OIC to settle your tax debt.

Why the IRS Accepts OICs

There are three reasons that they IRS will consider accepting your OIC. First, if you can show that you do not actually owe the money to the IRS. This is referred to as an offer in compromise based on doubt as to liability.

IRS Programs Available to Help with Tax Problems

January 3, 2017 | by Dennis N. Brager

When faced with tax problems, managing the debt without destroying your budget can be daunting. Depending on how much you owe, it could take years to get out from under the financial burden. The longer it takes, the more penalties you face, including interest and potential tax liens or levied assets.

Fortunately, the IRS offers several programs to ease that burden and in some cases reduce the total amount you will need to repay. These programs have been augmented to provide greater tax relief as part of an IRS policy change known as the Fresh Start Program.

Offers in Compromise (OIC)