Contact Us for a Free Consultation 240-499-8333

Tax Blog

Income Tax and Business Tax Settlements: Taxpayers Guide

Posted by Kamyar Mehdiyoun, Esq. | Sep 23, 2023

To settle a tax debt, the IRS or a state taxing authority such as the Maryland Comptroller or the District of Columbia Office of Tax & Revenue require from the taxpayer to demonstrate that tax debt is not collectible or that the taxpayer is not liable for the tax. The IRS and the state taxing agencies are in the business of collecting taxes not forgiving them. Therefore, proving to the IRS or to a state tax authority that the tax should be settled for an amount smaller than the original assessment is no easy matter.

Sometimes, the best way is to argue that the taxpayer is not responsible for the tax liability. For example, the IRS occasionally holds business owners personally responsible for business taxes such as sales tax or payroll tax. A business owner may want to challenge the IRS by arguing that he is not personally liable for the tax debt of the business. This may be done by filing an offer in compromise based on doubt as to liability. In other cases, a taxpayer is not challenging the fact that he is in fact liable for the tax debt. Instead, his argument is that his financial situation limits his ability to pay the entire tax and asks the IRS to reduce his tax burden based on doubt as to collectability.

Negotiating tax debt settlements with the IRS or with state taxing authorities is a delicate matter and requires tax law expertise and intimate familiarity with the IRS's rules and regulations. Investing in expert tax advice can save you both the stress of dealing with tax collectors and also result in large tax savings.

If you want to settle your tax debt, contact Kamyar Mehdiyoun, Esq. He has over 20 years of experience helping taxpayers negotiate a favorable settlement with the IRS and with state taxing agencies in Maryland, Washington, D.C and Maryland.

About the Author

Kamyar Mehdiyoun, Esq.

Kamyar Mehdiyoun, holds a Master of Law (LL.M.) degree in taxation from Georgetown University Law Center and focuses his practice on tax law. In 2003, he received the Award for Excellence in Tax Practice and Procedure from Georgetown. He also holds a Certificate in Employee Be...

Contact Us Today

Mehdiyoun Law Firm is committed to answering your questions about Tax law issues in Maryland, Virginia, and D.C. We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.