In this video, Attorney Anthony Parent talks about why it's not a good idea to wait for tax reform to pass to settle your tax debt. He goes through actual figures from a current client of ours and talks about how tax reform would crush our current Offer in Compromise amount. He touches on:
- How even a little change in your current tax rate can really frustrate a good settlement.
- How this would affect allowable expenses. (Hint: a big allowable expense for many of our clients is federal taxes!)
- Understanding how to calculate your actual ability to pay.
- If there is a 15%-20% tax rate on pass-through entities, how is this bad for settling back taxes?
- How to find out what the IRS really thinks about your case, and how much you owe.
- If your monthly expenses drop, how will this affect your monthly ability to pay?
- Why waiting for tax reform to pass is an expensive risk to take.
Note: Not everyone qualifies for an Offer in Compromise. Sometimes the best solution for a client is some form of an installment agreement. Be sure to learn about yesterday's topic — the Pros & Cons of IRS Streamlined Installment Agreements. If you'd like to talk to us about the best options for your case, contact us. We can help. Call us at 888-727-8796 or email firstname.lastname@example.org.