Austin & Larson Tax Resolution
Michigan State Offer In Compromise
Resolve Your Tax Debt Today! Complete Tax Relief Services
Tax Debt is Often
Intimidating
Frustrating
Confusing
Embarrassing
Stressful
… But it Doesn’t Have to Be
Who We Are | Michigan’s Trusted Tax Resolution Specialists
We are a full-service tax debt resolution company that specializes in resolving tax debt for individuals and business owners who are facing tax related issues with the IRS or State of Michigan. We are a local, Michigan based firm and have offices in Brighton, Saginaw, Lansing, & Jackson where we can meet in person to discuss and resolve your tax debt. Our tax relief firm is comprised of IRS Enrolled Agents, Accountants CPAs, and Tax Attorneys who are passionate about assisting taxpayers with resolving their tax liabilities.
At Austin & Larson Tax Resolution, we know dealing with tax authorities can be intimidating and time-consuming. If you have a tax issue with the State of Michigan or the IRS, we’re here to help. Our mission is to get you the best tax debt resolution with as little headache for you as possible. No matter the size of the tax debt, our team at Austin & Larson Tax Resolution is here to provide you with the tax help you need. Reach out for a free consultation to begin resolving your tax debt today!
Offer In Compromise: A Path to Resolving Tax Debt
A Michigan State Offer in Compromise is a program that allows qualifying taxpayers to settle their tax debt for less than the full amount owed. This option is designed for individuals who cannot pay their full tax liability due to financial hardship or other circumstances, and it provides a way to achieve relief while resolving tax issues with the state.
How Does a Michigan Offer in Compromise Work?
The Michigan Department of Treasury offers the Offer in Compromise (OIC) program to help taxpayers who are experiencing significant financial distress. This program provides an opportunity to negotiate a lower payment based on the taxpayer’s ability to pay, income, expenses, and asset equity. The state reviews each application carefully to determine if the offer is acceptable based on the taxpayer’s financial situation.
This program is not available to everyone. Applicants must demonstrate that paying the full tax debt would create undue financial hardship or that collecting the debt would be unrealistic. This program is particularly beneficial for taxpayers who owe a significant amount of money and have no viable means of paying it in full within a reasonable timeframe.
Who Qualifies for a Michigan Offer in Compromise?
Eligibility for a Michigan State Offer in Compromise is based on strict criteria. To qualify, the taxpayer must:
- Have filed all required tax returns: The taxpayer must be current with their tax filings. If any returns are missing, the application for an OIC may be denied.
- Demonstrate an inability to pay the full debt: The applicant must prove that they cannot pay the full tax amount due without causing financial hardship. This is typically determined through a detailed review of income, expenses, and assets.
- Show that the tax debt is legally owed: The taxpayer must acknowledge that they owe the debt but are unable to pay the full amount.
- Not be involved in any current bankruptcy proceedings: Taxpayers in bankruptcy are not eligible to apply for an Offer in Compromise.
It’s important to note that the Michigan Department of Treasury will only consider an OIC if they believe that the amount offered is the maximum amount the taxpayer can reasonably pay.
Benefits of the Michigan State Offer in Compromise
The Offer in Compromise provides several key benefits to taxpayers:
- Debt Reduction: The most significant advantage is the potential to settle your tax debt for less than the total amount owed. This can help you regain control of your finances without the burden of overwhelming tax debt.
- Avoiding Future Collection Actions: By resolving your tax liability through an OIC, you can prevent wage garnishments, liens, levies, or other aggressive collection actions by the state.
- Stress Relief: Tax debt can cause significant financial and emotional stress. Reaching a settlement through an Offer in Compromise can bring much-needed peace of mind and financial stability.
How to Apply for a Michigan Offer in Compromise
The application process for a Michigan State Offer in Compromise is detailed and requires thorough documentation. Here are the steps involved:
- Gather Financial Information: Applicants must provide detailed financial information, including income, expenses, assets, and liabilities. This information will help the state assess whether the taxpayer qualifies for the OIC and determine the appropriate settlement amount.
- Complete the Offer in Compromise Application (Form 5181): Michigan taxpayers must fill out Form 5181, which is used to apply for the Offer in Compromise program. This form requires you to provide a full picture of your financial situation, as well as the amount you are proposing to pay to settle your tax debt.
- Submit the Application: Along with the completed Form 5181, applicants must include all necessary supporting documents, such as bank statements, pay stubs, and any other information that demonstrates financial hardship.
- Wait for a Decision: Once the application is submitted, the Michigan Department of Treasury will review it. This review process can take several months. If the offer is accepted, you will receive notification, and a payment plan will be set up based on the agreed-upon terms.
Common Mistakes to Avoid
Applying for a Michigan Offer in Compromise can be complex, and making mistakes during the process can result in delays or denials. Some common mistakes to avoid include:
- Failing to Provide Complete Information: Incomplete or inaccurate information can lead to a denial. It is crucial to provide all requested documentation and ensure that your financial information is accurate.
- Not Keeping Up with Current Tax Obligations: Even while your OIC is being processed, it’s important to stay current on any new tax obligations. Falling behind on future taxes may jeopardize your application.
- Offering an Unrealistic Amount: Offering an amount that is too low may result in an automatic rejection of your OIC. Work with a tax professional to determine a reasonable offer based on your financial situation.
How Austin & Larson Tax Resolution Can Help
Navigating the complexities of a Michigan State Offer in Compromise can be challenging, but the tax experts at Austin & Larson Tax Resolution can guide you through the process. Our team of experienced tax attorneys and enrolled agents will work closely with you to evaluate your financial situation, prepare your application, and negotiate with the Michigan Department of Treasury on your behalf.
We understand the stress and pressure that tax debt can bring, and we’re committed to helping Michigan residents find relief through the Offer in Compromise program. Whether you need help calculating an appropriate offer or gathering the necessary documentation, we’re here to assist you every step of the way.
With the help of Austin & Larson Tax Resolution, you can navigate the application process with confidence, ensuring that your offer is fair, realistic, and likely to be accepted.
Don’t wait—contact us today for a free consultation to explore your options and start working toward financial relief.
Looking For A Fresh Start in Michigan?
We Are Here To Help!
Should the weight of tax debt be pressing down on you, we urge you to connect with us to avail of a no-cost consultation. Our objective revolves around untangling tax debt complexities for clients entangled in an array of tax-related dilemmas. It would bring us immense satisfaction to furnish you with solutions to your inquiries and aid you in swiftly settling your tax debt matters.
What We Do | Tax Resolution
Offer In Compromise
Installment Agreements
Non-Collectable Status
Compliance
Revenue Officer Representation
Levies & Wage Garnishments
Bankruptcy
Audit Representation
Tax Return Preparation
Handling the tax settlement process can feel overwhelming, but with our expertise, you can trust you're in capable hands. At Austin & Larson Tax Resolution, our experienced tax attorneys in Michigan are committed to providing the support and confidence you need. Our skilled tax settlement lawyers are well-known for their proficiency and deep understanding of Michigan State tax returns. We offer a full range of services, including thorough consultations and outstanding legal representation, all aimed at achieving the best results for your tax concerns.
Our Process | Simple, Fast & Stress Free
Step 1: Initial Contact
During your first call to our office, we will ask you a brief background of your current tax situation and determine the most convenient office location for your free initial consultation.
Step 2: Free Consultation
We will meet with you to review and discuss your individual facts and circumstances to create a customized tax relief plan for your situation and the next steps to take to resolve your tax situation.
Step 3: Begin Resolving Debt
Once we have decided to move forward, we will immediately begin working with the IRS on your behalf to resolve your case as quickly as possible. We will also provide advice and the steps you need to take to ensure you do not acquire any additional debt while we work to settle your case. From the moment you retain our firm, we will be your voice with the IRS and the point of contact for all taxing entities.
Step 4: Monitor Case Status
Some tax debt cases can be resolved quickly, while others may have quite a bit of back and forth contact with the IRS to reach full resolution. We will regularly monitor your case and keep you in the loop along the way so you are never left in the dark.
Step 5: Tax Freedom!
It is our goal not only to resolve your current tax debt but also to make sure that you don’t have any further tax problems. After we have reached resolution with your case, you will be fully equipped with best practices to avoid future tax issues of any kind.
We’re Here To Help
We understand how frustrating tax related issues can be and we are here to help resolve your tax payments once and for all. Our team has extensive experience working with the IRS on our clients’ behalf to fully resolve tax liabilities and we would love the opportunity to do the same for you. Reach out for a free consultation today!
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Brighton, Saginaw, Lansing, and Ann Arbor, MI
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