American Tax Defense

Day: May 2, 2025

  • What is an Offer in Compromise? A Lifeline for Taxpayers Who Can’t Pay

    What is an Offer in Compromise? A Lifeline for Taxpayers Who Can’t Pay

    Owing money to the IRS can feel overwhelming, especially when you simply don’t have the means to pay. But there’s hope — and it comes in the form of something called an Offer in Compromise (OIC).

    If you’re struggling with tax debt and feel like there’s no way out, an Offer in Compromise might be the lifeline you need.

    Understanding the Offer in Compromise

    An Offer in Compromise is a program administered by the Internal Revenue Service (IRS) that allows qualifying taxpayers to settle their tax debt for less than the full amount they owe. It’s not a loophole — it’s a legitimate option for those who truly cannot pay the full amount due without experiencing significant financial hardship.

    The IRS considers an OIC when it believes:

    • You can’t pay your full tax liability, or

    • Doing so would create serious financial hardship, or

    • There’s a doubt as to whether the amount owed is correct.

    Who Qualifies for an Offer in Compromise?

    The IRS uses a formula to determine eligibility based on your income, expenses, assets, and ability to pay. While not everyone qualifies, you may be eligible if:

    • You’ve filed all required tax returns.

    • You’ve made all estimated payments for the current tax year.

    • You’re not in an active bankruptcy proceeding.

    A pre-qualifier tool is available on the IRS website, which can give you an idea of whether you might be a good candidate.

    Types of Offers in Compromise

    1. Doubt as to Collectibility
      You owe the IRS, but you can’t afford to pay — now or in the foreseeable future.

    2. Doubt as to Liability
      You believe the IRS made an error or that you don’t actually owe all (or part) of the debt.

    3. Effective Tax Administration
      You technically could pay, but doing so would create extreme economic hardship or would be unfair or inequitable.

    How Much Should You Offer?

    Your offer amount depends on your “reasonable collection potential” (RCP) — what the IRS thinks they could collect from you over time. The IRS looks at your assets (home equity, cars, bank accounts) and future income minus basic living expenses.

    There are two payment options:

    • Lump Sum Cash: Pay 20% upfront and the rest in five or fewer installments.

    • Periodic Payment: Pay the offer amount in monthly installments while the IRS evaluates your offer.

    Pros and Cons of an Offer in Compromise

    ✅ Pros:

    • Potentially eliminate tens of thousands in tax debt.

    • Stop IRS collection actions like wage garnishments and bank levies.

    • Get a fresh financial start.

    ❌ Cons:

    • Can be difficult to qualify.

    • Lengthy process (4-12 months or longer).

    • IRS scrutiny of your financial life.

    • Non-refundable application fee and initial payment (unless low income).

    Professional Help Can Make a Difference

    Submitting an Offer in Compromise involves complex forms, detailed financial documentation, and a deep understanding of IRS procedures. Many taxpayers choose to work with a tax professional or resolution specialist to avoid costly mistakes and improve their chances of acceptance.

    Final Thoughts

    An Offer in Compromise isn’t for everyone — but for eligible taxpayers who genuinely cannot afford to pay their full IRS debt, it’s a powerful tool that can lead to true financial relief. Think of it as a second chance to get back on track, rebuild, and breathe easier.

    If you think you might qualify, consult a qualified tax expert to guide you through the process and help you submit the strongest offer possible.

  • Top 7 IRS Tax Problems Americans Face — And How to Solve Them

    Top 7 IRS Tax Problems Americans Face — And How to Solve Them

    Struggling with IRS problems? You’re not alone. Each year, thousands of Americans find themselves overwhelmed by tax issues—ranging from unfiled returns to wage garnishments and IRS audits. If you’re facing any of these problems, the worst thing you can do is ignore them.

    At American Tax Defense, we help individuals and businesses across the U.S. find relief from IRS stress. In this guide, we’ll cover the top 7 most common IRS tax problems and explain how you can fix them—fast and legally.

    1. Unfiled Tax Returns

    Keyword Focus: unfiled tax returns, help filing back taxes

    Failing to file your taxes—even for one year—can lead to serious consequences like penalties, interest, and criminal charges. The longer you wait, the worse it gets.

    ✅ Solution:

    American Tax Defense helps you file past-due returns, avoid unnecessary penalties, and regain compliance. We can also prevent the IRS from filing a Substitute for Return (SFR)—which often results in higher taxes owed.

    2. Owing More in Taxes Than You Can Afford

    Keyword Focus: tax debt relief, IRS payment plans, can’t pay taxes

    Many Americans end up with a tax bill they simply can’t afford—especially after an audit or a life event like divorce or job loss.

    ✅ Solution:

    We offer proven tax relief options such as:

    • IRS Installment Agreements

    • Offer in Compromise (Settle for Less)

    • Currently Not Collectible (CNC) Status

    Let us evaluate your financial situation and negotiate with the IRS on your behalf.

    3. IRS Wage Garnishment

    Keyword Focus: stop IRS wage garnishment, IRS taking paycheck

    If the IRS is deducting money directly from your paycheck, it’s called wage garnishment—and it can cause instant financial hardship.

    ✅ Solution:

    Our IRS tax professionals can quickly stop wage garnishments and negotiate a more reasonable resolution. We may even get previously garnished wages refunded.

    4. IRS Bank Levies

    Keyword Focus: remove IRS bank levy, frozen bank account IRS

    A bank levy allows the IRS to seize money directly from your account without warning. One day it’s there—next day it’s gone.

    ✅ Solution:

    American Tax Defense can help release IRS bank levies within hours. We work directly with IRS agents to secure your funds and prevent future levies from occurring.

    5. IRS Tax Liens

    Keyword Focus: IRS tax lien help, remove tax lien, credit impact of tax lien

    An IRS tax lien can severely damage your credit score and make it nearly impossible to get a loan, sell property, or refinance.

    ✅ Solution:

    We help remove tax liens through Lien Withdrawal, Subordination, or full debt resolution. Protect your financial reputation with expert help.

    6. IRS Audits

    Keyword Focus: IRS audit help, audit defense, tax audit experts

    An audit letter from the IRS can be frightening. Whether it’s a correspondence audit or in-person audit, the IRS is digging into your finances.

    ✅ Solution:

    With our experienced tax audit defense team, you don’t face the IRS alone. We represent you throughout the process and ensure your rights are protected.

    7. Payroll Tax Problems for Small Business Owners

    Keyword Focus: payroll tax debt, IRS business tax help, small business tax problems

    Many business owners fall behind on payroll tax filings. The IRS considers this a serious offense and may take harsh actions quickly.

    ✅ Solution:

    We help small businesses resolve payroll tax debt, negotiate repayment plans, and stay compliant with future tax obligations.

    👨‍💼 Why Choose American Tax Defense?

    ✅ Experienced IRS Tax Relief Professionals
    ✅ Affordable Payment Plans Available
    ✅ Free Confidential Consultations
    ✅ Serving All 50 States

    We don’t just solve IRS problems—we protect your financial future.

    📞 Get Help Today — Free Consultation

    Don’t wait for the IRS to seize your assets or garnish your wages. Call American Tax Defense now or request a free consultation through our website.

    🔗 Visit www.americantaxdefense.com
    📞 Call Now: (866) 451-4688
    📍 Nationwide IRS Tax Relief Services