Colorado Springs: Should I File an Offer in Compromise to Resolve my Tax Debt?

Facing a significant tax debt can be overwhelming, but an Internal Revenue Service (IRS) Offer in Compromise (OIC) provides a potential lifeline. This program allows taxpayers to settle their tax liabilities for less than the full amount owed, offering a fresh start for those in financial distress. Here are key reasons to consider filing an OIC:

1. Financial Relief: If you're struggling to pay your tax debt due to financial hardship, an OIC can significantly reduce the amount you owe, making it more manageable.

2. Avoid Bankruptcy: Filing for bankruptcy has long-term consequences. An OIC can be a preferable alternative, allowing you to resolve your tax issues without the severe impact on your credit score.

3. Simplified Process: Although the process can be complex, Cash Tracks Financial walks you through the process to provide tax relief and peace of mind.

4. Peace of Mind: Settling your tax debt can alleviate the constant stress and anxiety associated with owing the IRS, allowing you to focus on rebuilding your financial stability.

5. Future Compliance: Successfully completing an OIC can help you get back on track with your tax obligations, ensuring you remain compliant in the future.

Marcelino Dodge, EA, CTRC will analyze your circumstance to determine if you meet the eligibility criteria, filing an OIC could be a strategic move to regain control of your financial situation and secure a more stable future.

Cash Tracks Financial of Colorado Springs
Marcelino Dodge, EA, CTRC
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
www.cashtracksfinancial.com
success@cashtracksfinancial.com

Colorado Springs: My Request for Penalty Abatement was Denied, What Options Do I Have?

 

When a request for abatement of penalties is submitted, many times you will get the response that your explanation does not meet the reasonable cause standard.  If you have received such a denial, do not despair.  There is normally a period of time (30 to 60 days) you have to appeal the initial decision.  This leaves the question: How can I win on appeal?

To start you need to hire competent tax professional such as Marcelino Dodge, EA to  represent.   With a proper review of your facts and circumstances, we can determine if you qualify for First Time Abatement or if a more detailed appeal is needed.  On a more detailed appeal we will need all the information and documentation as to why you feel the penalties should be abate.  A clear, concise letter of explanation can then be prepared and submitted with the documentation establishing your case to the IRS appeals office for review.  The strong case we present the easier we make it for the IRS to approve the penalty abatement.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: How Can I Qualify for an Offer-in-Compromise?

 

When a taxpayer owes tens and even hundreds of thousands of dollar the the IRS for back taxes, an analysis of your reasonable collection potential is absolutely essential.  Without this analysis any submitted Offer-in-Compromise stands little chance of being accepted.  What your actual monthly expenses are may not be accepted by the IRS.

The analysis will help to determine what your future income is for purposes of IRS tax payments.  A thorough analysis will reveal if you qualify for an Offer-in-Compromise.  A well trained Enrolled Agent specializing in tax representation will complete this analysis before even recommending what action to take for your specific situation.

Marcelino Dodge, Enrolled Agent takes the time to do the necessary analysis of your income and expenses to determine what is the best course of action for your unique situation.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: What is a Doubt as to Collectability (DATC) Offer?

After careful analysis, the determination is made that you are a candidate for an offer in compromise through Internal Revenue Code Section 7122.  But, what kind of offer in compromise is right for you?  

To make an accurate determination a careful analysis must be completed.  Once your assets  and income have been analyzed to determine you ability or lack of ability to pay your tax bill, one possibility is the Doubt-as-to-Collectability offer.  With this type of offer you are telling the government that due to lack of assets and low future income, that you are simply unable to pay your taxes.

With this type of offer you request the government to accept a lower amount based on your financial situation.  Most commonly taxpayers offer either a lump-sum or make payments over a 24 month period.  To make this type offer there must be a detailed analysis completed by a competent tax professional such an enrolled agent.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Ste 200

Colorado Springs, CO 80903

Office: (719) 359-8789

www.cashtracksfinancial.com

Colorado Springs: What are the Types of Offers-in-Compromise?

 

You owe back taxes, you have a stack of IRS notices in that special drawer, and the IRS has just levied your bank account.  What can you do?  You heard about this thing called an offer-in-compromise.  What is an offer-in-compromise?  Can I really get one?  What type of an offer can I make?  The offer-in-compromise program is authorized by Internal Revenue Code Section 7122.  The IRS is authorized to establish guidelines for when an offer-in-compromise (OIC) should be accepted

 

Step one:  Find a qualified tax professional such as an enrolled agent who will do a proper analysis to see if you even qualify to do an offer-in-compromise.

Step two: If you do qualify to submit and offer-in-compromise, what type offer can you make?  Based on your facts and circumstances you may qualify for one of the following:

• Doubt as to Liability
• Doubt as to Collectability
• Effective Tax Administration

Only after a personalized, thorough analysis will a tax professional competently make a recommendation as to what fits your best and is most likely to be successful.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N.Cascade Ave., Ste 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

Colorado Springs: Can I Qualify to Pay Less Than What the IRS Says I Owe in Taxes?

 We have all heard the advertisements from services claiming to be able to negotiate your back taxes down from several thousand dollars to only a few dollars.   Is this really possible for everyone?  It depends on the facts and circumstances for each individual taxpayer.  According to the Internal Revenue Code (IRC) Section 7122 the IRS is authorized to accept a compromise from taxpayers.  How does a taxpayer qualify for an Offer-in-Compromise(OIC)?  

The first step is to find a qualified tax professional such as Marcelino Dodge, EA to consult with you to determine if you are a candidate for an OIC.  If you are a qualified to file an OIC, you have to next get fully compliant by filing 6 years of back tax returns.  Once the necessary tax returns are filed, then we start the process of completing the OIC, determining the type of offer to make, and how much to offer.

Cash Tracks Financial Inc.

Marcelino Dodge

525 N Cascade Ave

Suite 200

Colorado Springs, CO 80903

(719) 359-8789

 www.cashtracksfinancial.com