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Why you should NOT wait until tax reform to settle with the IRS

by: Claudine Gindel   2017-10-17

We have many people reach out to us regarding their tax issues. Lately, the most common question we get is, "Should I wait until tax reform passes before I handle my tax problem?" The short answer is "No." But why?

 

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 info@irsmedic.com. 


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