Dealing with tax debt can be overwhelming, especially in New York, where state taxes and the IRS can add up fast. If you’re feeling stressed or unsure about your options, you’re not alone—many New Yorkers face the same struggle. An Offer in Compromise (OIC) could be the solution, allowing you to settle your tax debt for less than you owe. It’s not a quick fix, but with the right guidance, it can provide real relief.
At Thorgood Law Firm, we understand how tough tax problems can be. Our experienced New York tax attorneys are here to guide you every step of the way and help you move toward a brighter financial future.
We have a proud record of assisting clients to significantly reduce their tax debt. In at least one instance, we were successful in reducing a taxpayer’s debt by more than One Million Dollars. Please note, however, that the likelihood of success depends on the particular taxpayer’s circumstances.
What Is an Offer in Compromise (OIC)?
An Offer in Compromise (OIC) is an IRS program that allows eligible taxpayers to settle their federal tax debt for significantly less than they owe. This option is ideal for those who can’t afford full payment or believe the IRS has miscalculated their debt.
To qualify, you must show that paying in full would cause financial hardship or that there’s a valid dispute over the amount. The IRS reviews income, assets, and expenses before making a decision. At Thorgood Law Firm, our New York tax lawyers can assess your situation and guide you through the application to improve your chances of approval.
Who Qualifies for an Offer in Compromise in New York?
If you’re struggling financially, you may qualify for an OIC under one of these three main conditions:
- Doubt as to Liability: If you believe the amount you owe is wrong or if you have evidence proving the IRS’s assessment is inaccurate, you could qualify.
- Doubt as to Collectibility: If you can’t afford to pay the tax debt in full, either now or in the future, you might be eligible for an OIC.
- Effective Tax Administration (ETA): If paying your tax debt in full would cause you severe financial hardship, the IRS may agree to a reduced settlement under the Effective Tax Administration rule.
If you’re feeling overwhelmed by the idea of paying your tax debt, this could be a solution worth exploring. At Thorgood Law Firm, our New York tax attorneys can help you determine if you qualify for an OIC and walk you through the process to ensure you have the best chance for success.
A key requirement for a successful OIC application is that your tax filing must be current and up to date. If you fail to meet this requirement, your application is likely to be rejected.
How Long Does the Offer in Compromise Process Take for New Yorkers?
We understand that waiting for answers during this process can be stressful. Applying for an Offer in Compromise can take several months, and in some cases, it can stretch over a year. During this time, the IRS will carefully review your financial information to determine if an OIC is the right option for you.
While you wait, we’ll be here to keep you informed and make sure everything is in order. Our team will handle all of the paperwork and ensure that your application is submitted correctly and promptly, so you don’t experience unnecessary delays.
Also, while your application is pending, the IRS will not engage in any debt collection enforcement actions against you.
What Happens If Your Offer in Compromise Is Rejected by the IRS?
If your Offer in Compromise is rejected, it’s not the end of the road. You have the option to appeal, and we’re here to help you with that. The IRS often rejects offers for reasons like insufficient documentation or offering too little. However, we can work with you to resubmit a new offer with updated or additional information to improve your chances of approval.
There may also be other tax relief options available, such as a payment plan or penalty abatement. Whatever the case, having Thorgood Law Firm’s New York tax lawyers on your side can make a huge difference in helping you get the relief you need.
Do You Still Have to Pay State Taxes to New York if the IRS Accepts Your OIC?
An Offer in Compromise only applies to your federal tax debt. If you owe state taxes to New York, you may still need to negotiate a separate settlement with the state tax authorities. Luckily, our team is well-versed in both federal and state tax laws, so we can lead you through the process of managing both types of tax debt.
We’re here to ensure that your entire tax situation is handled with the care and attention it deserves, and we’ll work diligently to help you resolve both federal and state tax issues.
Warning Signs of Tax Relief Scams Targeting New York Taxpayers
Unfortunately, the world of tax relief is filled with scams. Many companies will promise to settle your debt for far less than what you owe but don’t be fooled by empty promises. Here are some red flags to watch out for:
- Upfront Fees: Be wary of companies that ask for large fees before evaluating your case.
- Too-Good-to-Be-True Promises: No one can guarantee that your Offer in Compromise will be accepted.
- Lack of Transparency: Beware of firms that seem evasive or unclear about the process.
At Thorgood Law Firm, we believe in honest, transparent advice. Our New York tax attorneys are here to protect your best interests and help you find a realistic solution to your tax debt.
Why Choose Thorgood Law Firm for Your Tax Settlement?
We understand the burden that tax debt can place on your shoulders. With decades of experience, our New York tax lawyers know how to effectively deal with the IRS and other tax authorities. We’re committed to providing you with personalized, compassionate service every step of the way.
We don’t just see you as a client—we see you as someone who deserves a second chance. Our team takes the time to truly understand your unique situation and create a customized solution tailored to your needs. From your first consultation to the final settlement, we’ll be by your side, offering the support and guidance you need to regain control of your finances.
Get a Free Consultation with a New York Tax Attorney Today
If tax debt is weighing you down, you don’t have to face it alone. Thorgood Law Firm is here to help you explore your options, including the Offer in Compromise program. With our experienced New York tax attorneys, you may be able to settle your debt for less and regain control of your finances.
At Thorgood Law Firm, we are dedicated IRS tax attorneys with a track record of success. We provide personalized legal strategies to protect your rights and financial well-being.
Call (212) 490-0704 or contact us online for a free consultation. Let us help you get the fresh start you deserve.
