| Description: | There is a time limit for the IRS to assess or collect back taxes. Once that time limit expires, the IRS can no longer take collection actions. A Houston tax attorney can analyze your tax information to determine if any of the tax years for which you owe are at or near the statute of limitations. Generally speaking, the IRS has 10 years from the date a tax is assessed to collect on the back taxes (there are certain occurrences which can extend the 10-year deadline). This is a very formal process subject to the IRS’s rules and is not as easy as calling the IRS and saying “let’s make a deal.” A Houston tax attorney will analyze your IRS tax debt situation to determine if it makes sense to prepare an offer in compromise for your tax debt. An OIC is an agreement where the IRS will accept an amount less than what you owe as settlement for your back taxes. The IRS requires that you submit a non-refundable payment equal to 20% of the total offer along with the application. An OIC should only be submitted after careful calculation and considerations. |
