214.507.3515 info@irstaxlawfirm.com

Frequently Asked Questions

Q: I keep hearing about tax resolution services for those in tax debt. What exactly does this mean?

A: “Tax resolution services” refers to the many ways in which the Reese Law Firm works to eliminate your IRS or state tax debt. These services may include things like an Offer in Compromise (OIC), tax debt negotiation, penalty abatement etc. We can also work to remove a bank levy or wage garnishment and our team members are available to prepare personal and business tax returns the correct way.

Q: What is an Offer in Compromise (OIC)?
A:  Depending on your tax debt situation, one of the tax resolution services we may pursue is an Offer in Compromise (OIC). An OIC is an agreement between the taxpayer and the IRS that settles the full tax liability for a lesser amount. There are many factors involved in the success of an OIC, but very little has to do with the actual amount of tax debt you owe. During our free consultation, we discuss your situation to determine if an OIC is the best option available to you. If an OIC is pursued, our experienced staff will then work hard to negotiate with the IRS on your behalf. Through this program, taxpayers unable to pay their tax debt may be able to settle with the IRS for a fraction of their total back taxes.
Q: Why would the IRS settle for so much less than I owe in back taxes?
A:  Congress has authorized the IRS to help taxpayers settle their liabilities in order to get a fresh start.  The Offer in Compromise program promotes voluntary compliance with future payment and filing requirements. There are 3 OIC plans that you may be able qualify for:

  • Doubt as to Liability – If it’s not clear that you actually owe the money.
  • Doubt as to Collectability – Based upon your assets and income, you can’t afford to pay the IRS the full amount you owe in a reasonable period of time.
  • Effective Tax Administration – The IRS may allow you to pay less if you can show that it would be unfair to require you to pay the whole amount even though you could afford to do so (for example, if you are retired and paying the tax debt might mean losing your home).
Q: Why hire a tax attorney or tax relief company?
A:  Most taxpayers find dealing with the IRS intimidating, frustrating and extremely time-consuming. A specialized tax professional or tax relief company can reduce your stress and make the process go much more smoothly. Plus specialized tax professionals, such as those at Reese Law Firm, are highly skilled at negotiating with IRS and state agents and can often achieve exceptional results.
Q: If I hire Reese Law Firm will I still have to talk to the IRS?
A:  In most cases the answer is NO. Once a Power of Attorney is filed (which we will complete), the tax professionals at Reese Law Firm will handle all correspondence within the different divisions of the IRS or state tax boards. That means we will handle the communication between all agents, officers and auditors so you can get back to focusing on your business, family and life!
Q: Even though I am making installment payments, can I do an Offer in Compromise?
A: Yes! And in most cases the installment agreement can be suspended while the IRS is evaluating your Offer in Compromise.
Q: How long does it take for an Offer in Compromise to be approved by the IRS?
A: Depending on the IRS caseload, it generally takes eight to ten months. But no matter how long it takes the Internal Revenue Service to review the Offer in Compromise, during that time all further collection activities are suspended.
Q: Do I need to be an attorney to represent my case before the IRS?
No, you don’t need to be an Attorney to represent your case or that of somebody else before the IRS. You can either be an Attorney, Certified Public Accountant (CPA) or an Enrolled Agent with the IRS. Enrolled Agents should be licensed by the US Treasury, and they must demonstrate competence in taxation. Hiring a licensed attorney is, however, better.

Let’s Get Started

Ready To Make a Change? Let's Get You The Tax Relief You Deserve!