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end your irs or ny tax debt with offer in compromise service
Facing Overwhelming Tax Debt? Ask Gary Mehta, CPA, EA How Offer In Compromise in New York Can Help!
The weight of a significant tax debt can be crushing. The constant worry, the aggressive notices from the Internal Revenue Service (IRS) or the New York State Department of Taxation and Finance, and the fear of liens, levies, or wage garnishments can disrupt every aspect of your life. For many financially distressed taxpayers in New York City, the situation can feel hopeless.
But it’s not. There is a path forward.
The Offer in Compromise (OIC) program is a powerful tax relief solution offered by both the IRS and New York State. It’s an agreement that allows eligible taxpayers to resolve their tax liability for a fraction of the total amount owed. The OIC process involves a thorough evaluation of the taxpayer's ability to pay the entire amount owed to the IRS or state agencies, taking into account all income, expenses, and assets. However, navigating this complex process alone is a monumental task with a high risk of failure.
This is where expert representation becomes your most valuable asset. At Gary Mehta, CPA, EA, we specialize in helping individuals and business owners across New York City find relief from their tax burdens. As a firm led by a Certified Public Accountant (CPA) and an Enrolled Agent (EA), we possess the unique dual expertise in accounting and tax law required to successfully negotiate with tax authorities. We are your dedicated tax problem helper, your advocate, and your guide back to financial stability.
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Gary MEhta CPA, EA'S Key Insights on Offer in Compromise
For those under the stress of tax debt, here are the critical takeaways
- A Fresh Start is Possible: An Offer in Compromise allows you to settle your tax debt for less than you owe, providing a definitive end to your tax problems and a chance to move forward.
- Professional Help is Crucial: The IRS and NYS have very low acceptance rates for OICs filed by individuals. Our expertise dramatically increases your odds of a successful outcome by ensuring your compromise application is precise, compelling, and fully documented.
- Eligibility is Complex: You qualify based on the IRS's assessment of your income, assets, and other financial factors—not on what you want to pay. The IRS uses a strict formula to determine eligibility, and we conduct a thorough analysis to see if you qualify.
- It’s Not “Pennies on the Dollar” for Everyone: While some settle for a small percentage, the settlement amount is based on your specific financial circumstances. We work to negotiate the lowest possible settlement allowed by law.
- The Process is a Marathon, Not a Sprint: An OIC takes months, sometimes over a year, and requires meticulous preparation and follow-through. Our team manages the entire process for you.
- An OIC is Not the Only Option: If an OIC isn’t the best solution for you, we can negotiate other favorable resolutions like Installment Agreements, Penalty Abatements, or Currently Non-Collectible status.
Expert CPA and EA insights on Offer in Compromise.
What is an Offer in Compromise and Why is it Offered?
Gary Mehta CPA, EA Provides Expert Offer in Compromise Representation against IRS AND New York
An Offer in Compromise is a formal agreement between a taxpayer and a tax agency (the IRS or New York State) to resolve the taxpayer’s entire tax liability for a lower amount than what was originally owed. It’s a comprehensive solution intended to put a final, binding end to a lingering tax problem.
You might wonder why the government would ever agree to accept less money. The reason is pragmatic: it’s often in their best interest. The IRS and the NYS Tax Department recognize that for some taxpayers, collecting the full debt is simply not feasible due to severe financial hardship. The IRS considers factors such as your ability to pay, income, expenses, and assets when evaluating an OIC application. Forcing collection could push an individual or business into bankruptcy, resulting in the government getting even less. An OIC allows them to collect a reasonable amount now, rather than nothing later. Before agreeing to an OIC, the IRS also evaluates whether the tax debt can be collected within a reasonable period.
However, this compromise program is not a simple discount. It is a rigorous process where you must prove that one of three specific conditions exists.
The Three Grounds for an Offer in Compromise
The IRS and New York State will only consider an OIC for the following reasons:
- Doubt as to Collectibility: This is the most common reason for an accepted offer. It applies when your income and assets are not sufficient to pay your full tax debt within the collection statute of limitations (typically 10 years). You must demonstrate that paying the full amount would create an undue economic hardship, leaving you unable to afford basic living expenses.
- Doubt as to Liability: This is a less common but powerful basis for an OIC. A liability offer is appropriate when there is a legitimate doubt that you actually owe the tax in the first place. This could be due to a mistake in the original assessment, a misapplication of tax laws, or other factors that make the tax amount incorrect. Proving this requires deep technical knowledge of the tax code. If you and your spouse filed a joint tax return and are both liable for the tax debt, a joint offer may be required to resolve the liability for both parties.
- Effective Tax Administration (ETA): This is the rarest type of OIC, reserved for extraordinary circumstances. Under an ETA offer, you might have the assets and income to pay the full tax liability, but doing so would be profoundly unfair or inequitable. Examples could include a serious long-term illness or other life events that justify a compromise, even without financial hardship in the traditional sense.
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Why You Need an Expert CPA & EA for Your Offer in Compromise
Gary Mehta CPA, EA: Your Top Choice for IRS and New York Tax Help
You may see advertisements claiming to settle tax debt for "pennies on the dollar." While this refers to the OIC program, these ads often downplay the difficulty of getting an offer accepted. According to the IRS's own data, they receive tens of thousands of OIC applications each year but reject a majority of them.
Why the low success rate? Because the process is a minefield of complex forms, strict deadlines, and subjective evaluations. A single mistake on your application, missing supporting documentation, or a poor negotiation strategy can lead to an immediate rejection.
Maximizing Your Chances of Success
Hiring Gary Mehta, CPA, EA, is the single most effective step you can take to increase your odds. Here’s why our representation is different:
- Dual Expertise: As both a CPA and an EA, Gary Mehta possesses an elite combination of skills. The CPA credential signifies deep knowledge of accounting and financial analysis, crucial for preparing the detailed financial statements required. The Enrolled Agent (EA) credential is the highest designation the IRS awards, signifying proven expertise in tax law and granting unlimited practice rights to represent taxpayers before the IRS—a status shared with a tax attorney or tax lawyer.
- Deep Financial Analysis: We don’t just fill out forms. We perform a forensic analysis of your financial condition, reviewing your income sources, expenses, and asset equity. This allows us to calculate your “Reasonable Collection Potential” (RCP)—the key figure the IRS uses to evaluate an offer—and build a strategy to present your case in the most favorable light.
- Meticulous Application Preparation: The OIC application (IRS Form 656 and Form 433-A/B) is incredibly detailed. It requires extensive supporting documents, including years of tax returns, pay stubs, bank account statements, retirement account statements, and a credit report. We manage this entire process, ensuring every piece of financial information is accurate and presented correctly.
- Strategic Negotiation: The IRS examiner assigned to your case will scrutinize your submission. They may challenge your listed expenses or asset values. Our team handles all communication and negotiation with the IRS on your behalf. We know the tax laws and administrative procedures inside and out, allowing us to counter unreasonable demands and advocate effectively for the acceptance of your offer. The IRS may also negotiate on payment terms, including how your offer will be paid—whether as a lump sum or if you will pay monthly through a periodic payment plan—depending on your financial situation.
Attempting an OIC alone is like representing yourself in court without a lawyer. With our team, you have a seasoned professional fighting for you every step of the way.
Win your IRS Offer in Compromise by hiring Gary Mehta, CPA, EA. Get a tax settlement today!
OUR Offer in Compromise Process: A Step-by-Step Guide
Outlining Gary Mehta CPA, EA's Process for Evaluating & Representing Clients for Offer in Compromise
Understanding the journey is key to managing the stress of tax resolution.
Step 1: Confidential Consultation and Eligibility Check
It begins with a private conversation. We’ll review your tax notices, discuss your financial circumstances, and determine if you meet the preliminary OIC requirements, such as having all required tax returns filed and not being in an open bankruptcy proceeding.
At this stage, taxpayers may also have the option to submit their offer in compromise application through an individual online account, providing added convenience and accessibility.
Step 2: Comprehensive Financial Discovery
If you appear to be a candidate, we begin gathering the necessary financial information. This includes a deep dive into your income, expenses, and assets. We will analyze everything needed to build a complete picture for the IRS or NYS Tax Department.
Step 3: Strategizing the Offer Amount
Based on our analysis, we will calculate the minimum offer amount that the government is likely to accept. We’ll discuss the payment options with you, which typically involve a lump sum payment or a series of short-term monthly payments. We will craft a preliminary proposal designed for success. After the initial payment or settlement offer, you must be prepared to pay any remaining balance as agreed upon in the offer in compromise.
Step 4: Preparing the OIC Application Package
This is where our expertise shines. We will complete the complex IRS or New York State separate forms, compile all supporting documents, and write a compelling narrative that clearly outlines the reasons for your offer. The package will be submitted along with the required application fee and initial payment.
Step 5: Representation During the Investigation
Once submitted, an examiner is assigned to your case. This associated investigation can take 6-18 months. During this time, the examiner will verify your financial information and may ask for clarification. We handle all correspondence and phone calls, protecting you from direct contact with the IRS.
Step 6: Negotiation and Final Decision
If the examiner challenges aspects of the offer, we will negotiate directly with them, providing additional evidence and legal arguments to support your case. Our goal is to secure an acknowledgement letter that your offer is accepted.
Step 7: Post-Acceptance Compliance
Once the IRS accepts your offer, you must pay the agreed-upon amount and remain in full compliance with all tax laws for five years. This includes timely filing of all future tax returns and making all required estimated tax payments. We help you understand these terms to ensure your hard-won compromise is not revoked.
Navigating the New York State Offer in Compromise
Many taxpayers mistakenly believe that an IRS offer automatically resolves their state tax debt. This is not the case. The New York State Department of Taxation and Finance, also known as the New York Tax Department or York Tax Department, has its own, separate Offer in Compromise program with specific procedures and criteria for demonstrating hardship and negotiating settlements.
The NYS OIC process is often considered even more demanding than the IRS’s. The state’s financial analysis can be more aggressive, and their willingness to compromise may be lower. It is essential to work with a representative who has specific experience dealing with the NYS Tax Department.
We manage both federal and New York State offers, often simultaneously. We understand the unique requirements of the NYS Offer in Compromise program and can tailor a separate offer that addresses their specific criteria, giving you the best chance of resolving both your federal and state tax liability.
Tax Debt Negotiation at it's best with Gary Mehta, CPA, EA. Solve your NYC taxes today!
ELIGIBILITY OF OFFER IN COMPROMISE PROGRAM
What are the prerequisites to offer in compromise program?
To qualify for an OIC, the taxpayer must meet certain requirements, including:
- Filing all required tax returns and making all required estimated payments.
- Not being in an open bankruptcy proceeding.
- Having a valid extension for a current year return (if applying for the current year)
- Being an employer and made tax deposits for the current and past 2 quarters before you apply.
The taxpayer must also submit a detailed financial statement and other supporting documentation to the IRS. The IRS will then review the taxpayer's financial situation and make a decision on whether to accept the offer.
NY Tax relief services help you resolve your tax debts to IRS and New York. See if you're eligible!
OFFER IN COMPROMISE SERVICES ACROSS NEW YORK
Tax Resolution Experts Serving All of New York City and Beyond
No matter where you live or work in the five boroughs, our team is ready to help. We combine sophisticated, modern representation with a deep understanding of the local economic landscape.
- Manhattan: From the fast-paced businesses in the Financial District and Midtown to the creative entrepreneurs in Chelsea and the East Village, we provide the expert tax representation Manhattanites demand.
- Brooklyn: We serve the diverse communities of Brooklyn, helping small business owners in Williamsburg, families in Park Slope, and professionals in Downtown Brooklyn resolve their tax issues.
- Queens: We are proud to assist the hardworking residents and business owners throughout Queens, from Long Island City and Astoria to Flushing and Jamaica.
- The Bronx & Staten Island: Our services extend across the Bronx and Staten Island, ensuring every New Yorker has access to top-tier tax debt relief services.
- NYC Metro Area: We also represent clients in surrounding areas, including Yonkers, Upstate New York, and Connecticut.
Offer In Compromise Services Across New York City. Settle your tax debt today!