Dr. Friday Tax and Financial Firm, Inc. is a full service financial firm and we deal with the Internal Revenue Service on behalf of our clients so they do not have to. We can set up file offer and compromises and/or set up payment plan etc. Each one of our clients is unique and each of their issues with the IRS is different so we treat each client individually and we have found this to be very successful when dealing with IRS issues. Many companies have a one size fits all approach. We do not, so if you want individual attention and solutions to your IRS issue call Dr. Friday today.
So many people want to know what is an enrolled agent and what can they do to help me. So let’s review!
Enrolled Agent
An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by passing a three-part comprehensive IRS test covering individual and business tax returns. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
- Ability to pay;
- Income;
- Expenses; and
- Asset equity.
The IRS generally approves an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone.
Payment Plans
Installment Agreements
You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply:
- File all required tax returns;
- Consider other sources (loan or credit card) to pay your tax debt in full to save money;
- Determine the largest monthly payment you can make ($25 minimum); and
- Know that your future refunds will be applied to your tax debt until it is paid in full.