Frankfort, Illinois Tax Law

Our firm advises and represents taxpayers who may have an outstanding debt with the Internal Revenue Service, or IRS. If you owe money to the IRS, you have rights as a taxpayer. Your rights are spelled out in the Internal Revenue Code, which limits the power of the IRS to collect, levy and/or destroy.

Currently Not Collectible Status

Currently Not Collectible status, or CNC, protects you from the IRS collection efforts by stopping levies, threatening letters, and collection enforcement. CNC status forces the IRS to leave you alone without requiring any payment from you in the short term. The IRS will consider your tax debt as currently not collectible if we can provide them with a collection information statement verifying of the financial hardship you would experience if the IRS forced you to pay them.

If a taxpayer remains uncollectible for 10 years, the period of time the IRS has to collect a debt, the debt would then be permanently eliminated and forgiven.

Offer in Compromise

In some cases, it is possible to eliminate your tax debt at a significant discount through an Offer in Compromise. If you qualify for this program, also known as “OIC”, the IRS will wipe your tax bill clean after accepting an amount less than the taxpayer owes.

In the last few years, the IRS has accepted up to 40% of the offers in compromise that have been submitted. The IRS is not required to accept your offer and reduce your tax bill, but they are required to give an OIC a fair analysis.

Can You Qualify for an Offer in Compromise?

In order to be considered for OIC, a taxpayer must show the IRS that one of the following conditions pertains to them:
  • There is some doubt as to whether the IRS can collect the tax bill from you, now or in the foreseeable future. The IRS refers to this as "doubt as to collectability."
  • As a result of exceptional circumstances, payment of your full tax bill would cause the taxpayer an "economic hardship" or would be "unfair" or "inequitable."

There is another less frequently used condition: "doubt as to liability." In order to pursue this, taxpayers must file Form 656-L. This offer is based on a claim that there is doubt as to whether the tax liability assessed is correct. This is an unusual and more difficult avenue to pursue. The IRS recommends you use its online pre-qualifer tool to determine whether you are eligible to make an offer in compromise.

If you are looking for relief from a debt with the Internal Revenue Service, call our firm today.

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21146 Washington Parkway, Frankfort, IL 60423
| Phone: 708.487.6080

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