ALTERNATIVE SOLUTIONS

This is often the first alternative tax solution many people look at. If you owe a significant amount of back taxes, you might never realistically be able to pay it all back. The IRS knows this, and you know this.

Filing an Offer in Compromise (OIC) is and agreement made with the government that shows you both acknowledge and agree on this. It allows you to pay back less than you owe. If you qualify under one of these three tax situations, you could be eligible to file an OIC:

• Doubt as to collectability
• Doubt as to liability
• Effective tax administration

Working with Utah tax attorney Jordan Wilcox, you will get a detailed analysis of your current tax situation. During this analysis he will let you know if you are eligible under any of these categories and the next steps you’ll need to take to file.

In a marriage, you trust your spouse with your finances. When he or she says that you do not owe anything, or you owe very little, you believe it. Then, when the IRS comes knocking on your door, you are shocked. Now you are in the desperate situation where you are held responsible for tax burden you never knew you had.

In this case, you are an innocent spouse. The government offers relief to innocent spouses who meet certain criteria:

• If you filed your taxes jointly.
• If your spouse or former spouse did not report all of your income and deductions correctly.
• If no fraud was committed between you and your spouse.
• If you could not know that there was an issue.
• Your spouse left you in a position where you cannot fairly be held responsible for his or her actions.

It’s rare that the IRS takes hardship into consideration, but in some cases, it must. If you struggle to meet your daily expenses as it is, or if paying back your taxes will leave you in a devastating financial position, you might be able to escape partial tax payment due to hardship status.

To file under hardship status requires a lot of paperwork and documentation. Talk to your Utah tax attorney to learn more about what you need to show in order to be able to file under this alternative solution.

Has the government put a levy on your home? Are they garnishing your wages? You might be able to put an end to that.

The process to release levies and wage garnishments is not easy. Talk to your tax attorney to learn more about how to do this the right way in your situation.

The government does not afford you much time to pay back your taxes. In many cases, you could have only 10 days before the IRS puts a lien on your property. This can do major damage to your credit score. Contact a tax attorney to get this released as soon as possible, with as little damage as possible.

The penalties put in place by the IRS are high. Penalties can mount higher than your tax debt and can empty your family’s savings account. Talk to your tax attorney to determine if you qualify for what the government calls “penalty abatement” so you can avoid extra debt.

Many people are forced to file bankruptcy to get out of their tax debt. While on the surface this solution seems like it could be effective, it is important to keep in mind the aftermath of filing for bankruptcy: long-lasting damage to your credit and financial history.

Before you submit your paperwork and file for bankruptcy, talk to a tax attorney to determine if there is a better solution for you.