It’s discouraging to lose your IRS appeal. Like any battle with the IRS, the appeals process is an arduous one. Whether you’re itching to continue your fight with the IRS or exasperated and ready to throw your hands up, you still have options. At Highland Tax Group, we encourage you to explore these options with our team before deciding that all hope is lost. Let’s explore a few potential routes worth pursuing.
Alternative Resolution Options
While you may have lost your case with the IRS, it doesn’t mean you are stuck with the current terms to pay back your debt. If you have significant tax debt and were able to pay it in full, you would. No one voluntarily gets into this situation, so the current terms likely don’t reflect your ability to pay.
Negotiating with the IRS can allow you to get better terms. One option is an Offer in Compromise (OIC), where you may be able to settle your tax debt for less than the full amount. You propose an amount you can realistically pay, and the IRS may choose to accept if it doesn’t think recovering the full amount is possible now or in the future.
Another option is to set up an installment agreement, a monthly plan that allows you to pay off the debt over time. With an installment agreement in place, the IRS won’t pursue forced collection (such as liens or levies) so long as you keep up with your payments.
Accept Your Debt with Conditions
Accepting your debt with conditions means you aren’t disputing the amount you owe, but rather proposing an alternative to how the IRS will collect the debt. This can involve requesting that the IRS place you on currently not collectible (CNC) status due to financial hardship or asking for penalty relief on certain charges, such as interest due.
Bringing Your Case to Tax Court
If you disagree with the IRS’s decision after your failed appeal, you can consider bringing your case to court. Your case will be heard in either the U.S. Tax Court, U.S. Court of Federal Claims, or a U.S. District Court.
This option is only appropriate if you have a strong legal or factual basis that the IRS has made the wrong call. Understanding if your case meets that threshold isn’t a simple matter. You should consult with a qualified tax professional who can advise you on whether it’s possible that the IRS incorrectly applied laws or glossed over important evidence.
At Highland Tax Group, we can help you determine which options are available in your case and how to move forward pursuing the best one. Contact us today to schedule your consultation.