Raleigh, NC, Lawyer Advises on Negotiating Tax Debt

Taxpayers facing overwhelming tax bills often wonder, "Can you negotiate tax debt?" The short answer is yes, but the process requires careful navigation and understanding of IRS procedures.

An experienced tax lawyer in Raleigh, NC, can provide invaluable assistance in this complex area. Murray Moyer, PLLC offers guidance to individuals and businesses seeking to resolve their tax obligations.

Understanding Tax Debt Negotiations

Negotiating tax debt with the IRS involves several potential avenues for relief. Taxpayers should familiarize themselves with these options to make informed decisions about their financial future.

Offer in Compromise

An Offer in Compromise (OIC) allows taxpayers to settle their tax debt for less than the full amount owed. This option is ideal for those who cannot pay their full tax liability or doing so would create financial hardship.

The IRS considers the taxpayer's income, expenses, asset equity, and ability to pay when evaluating an OIC. Approval of an OIC can significantly reduce tax debt, but it requires a detailed application process and strict compliance with future tax obligations.

Installment Agreements

Installment agreements are monthly payment plans that allow taxpayers to satisfy their debt over time. These agreements can be short-term (lasting up to 120 days) or long-term (extending beyond 120 days).

The IRS offers several types of installment plans, including streamlined agreements for smaller debts and partial payment plans for larger amounts. While these agreements allow for more manageable payments, interest and penalties may continue to accrue during the repayment period.

Currently Not Collectible Status

For taxpayers experiencing severe financial hardship and wondering, "Can you negotiate tax debt?" Currently, The Not Collectible (CNC) status provides temporary relief from IRS collection efforts. Under CNC status, the IRS acknowledges that the taxpayer cannot pay their tax debt and halts many collection actions.

However, this is not a permanent solution, as the IRS will periodically review the taxpayer's financial situation. Additionally, penalties and interest continue to accrue on the unpaid balance during this time.

Exploring IRS Settlement Options in Raleigh, NC

Can you negotiate tax debt? An IRS settlement can provide significant relief for taxpayers struggling with overwhelming debt.

One of the more common forms of settlement is the Offer in Compromise (OIC). This program allows eligible taxpayers to settle their tax debt for less than the full amount owed. Key factors the IRS considers when evaluating an OIC include:

• The taxpayer's ability to pay
• Income and expenses
• Asset equity

Submitting a successful OIC requires detailed financial documentation and a compelling case for why the IRS should accept less than the full amount owed. Professional guidance from a team like Murray Moyer, PLLC, can significantly improve the chances of approval.

Developing a Strategic Payment Plan

For those who don't qualify for an OIC, a payment plan can offer a manageable way to address tax debt. The IRS offers several types of installment agreements, including short-term payment plans lasting 120 days or less, long-term payment plans extending beyond 120 days, and partial payment installment agreements.

When negotiating a payment plan, taxpayers should carefully consider their ability to make regular payments, the total amount owed, and the impact on penalties and interest. A well-structured payment plan can help taxpayers avoid more severe collection actions while gradually resolving their debt, providing a path to financial stability and compliance with IRS requirements.

Murray Moyer, PLLC, Offers Tax Debt Guidance in Raleigh, NC

Negotiating tax debt can be a daunting process, but taxpayers don't have to face it alone. Murray Moyer, PLLC, offers guidance on reducing tax debt. Their team of tax professionals understands the intricacies of IRS procedures and can help clients explore all available tax debt options.

For those in financial trouble and asking questions like, "Can you negotiate tax debt?" seeking the assistance of a qualified tax professional can make a significant difference in achieving a favorable outcome. Raleigh, NC, residents can contact Murray Moyer, PLLC, at (919) 846-6779 to discuss their options for negotiating tax debt and finding relief from their financial burdens.

Contact Information:

Murray Moyer PLLC

4600 Marriott Drive, Suite 120
Raleigh, NC 27612
United States

Michael Murray
https://www.murraymoyer.com/