There is perhaps nothing more frightening than owing taxes to the Internal Revenue Service or the State of Arizona.
They have collection powers far in excess of what normal non-tax creditors have. Clients with tax problems usually owe income taxes for past years, business sales tax to the State of Arizona, or business withholding taxes. The Internal Revenue Service and the State of Arizona have the ability to place a lien on your home or other assets, levy your paycheck or bank accounts or even shut your business down. In spite of these powers, they can be controlled or the taxes reduced or eliminated in a number of ways.
Some older taxes can be discharged in bankruptcy. Programs exist with both the State of Arizona and the Internal Revenue Service that allow for reasonable payment plans, abatement of penalties and offers in compromise. The offer in compromise is a program that allows you to pay off the tax by making a small lump sum payment or payments of a reduced amount over two years, if you can qualify under the rather rigid requirements of the program. The key to making an offer in compromise work is to be able to use the formulas used by the taxing agency to your benefit.
Our office understands how the IRS and State of Arizona view offers in compromise so that we can craft the offer so as to fit these requirements. If an offer in compromise cannot work, we then work with the IRS or the State of Arizona in establishing a payment plan or in seeking relief through penalty abatement or innocent spouse treatment. We also represent clients in releasing tax levies and liens. We have all our clients sign a power of attorney which allows us to deal directly with the Internal Revenue Service or the State of Arizona so you will never have to talk with them.
The most important step in resolving your tax problems is to consult with a professional as soon as possible. The longer you wait makes the resolution more difficult.
