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Offers in Compromise and Tax Installments Agreements in New Jersey

Posted by Kridel Law Group | Jun 03, 2020 | 0 Comments

If you are dealing with the repercussions of unfiled tax returns or late income tax payments, you will need the assistance of an experienced New Jersey tax attorney.

No matter how delinquent your tax returns or payments may be, we can help. While it can seem daunting at first to take steps to bring your tax liability current, the sooner a qualified tax lawyer can review your situation, the sooner your tax problems can be resolved. There are several options for taxpayers who wish to make things right with the IRS, even if they are unable to pay their debts in full—or even at all.


Simply put, an offer in compromise is an agreement between the IRS and a taxpayer to settle the debt for less than the amount owed. In order to qualify for an offer in compromise, the taxpayer must meet at least one of three conditions:

  • Doubt as to collectability: You are unable to meet your tax liability, even if your assets were to be liquidated. You simply do not have enough assets or income to pay the amount owed;
  • Doubt as to liability: You dispute that the tax liability is accurate and claim that you do not actually owe the taxes;
  • Effective tax administration: While you may have the assets necessary to pay the tax debt, requiring you to do so at this time would cause an unfair hardship, due to exceptional circumstances.


An installment agreement allows the taxpayer to pay back-taxes in monthly installments over time, often in exchange for a reduction of the total amount owed. Installment agreements can be incorporated into Chapter 13 bankruptcy proceedings or can stand alone if bankruptcy is not appropriate for the client's circumstances. If an offer in compromise is not accepted by the IRS, an installment agreement may be a possibility for obtaining tax relief.


Regardless of what specific type of tax matter you are facing, one of our experienced tax resolution attorneys in New Jersey can analyze the circumstances of your case and make sure that your interests are protected. Because tax matters can be so complex, it is critical that you have an attorney on your side who knows the nuances of reaching a tax resolution with the IRS and has access to and experience working with qualified tax accountants. Contact us today for an appointment.

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