Schneider & Stone PLC | Tax Mitigation

Tax Mitigation

Tax Mitigation and problem resolution are areas that Schneider & Stone excel in. No matter what the reason for the tax problem, we can help get you back on track.

The Process

Contact us for a free consultation. We will review your situation, any notices you have received from the IRS, and discuss a game plan for fixing your situation. We do not charge upfront fees for the consultation because we want to make sure we have an idea and strategy prepared prior to collecting any fees.

Perhaps you are experiencing one of the following situations:

Based on this information, we will determine the best course of action, quote a price, and begin working towards a solution. One of the first steps we will take is to have you sign a power of attorney for tax purposes. This form is critical, as it will allow us to represent you before the IRS, and more importantly it will allow you to step back and let skilled professionals deal with the situation. Once this is signed, a few of the solutions to the situation would be:

File your old tax returns

Did you know if you don’t file a tax return the IRS will do it for you? Unfortunately these Substitute for Return forms often give the taxpayer the worst case scenario for their taxes. We will contact the IRS, gather any necessary documents (w2s, 1099s, etc) and work with you to file the tax returns.

Establish an installment agreement- If you owe the IRS money they expect to get paid. We may decide (with your approval) to establish a reasonable payment arrangement that you can afford.u.

What can an installment agreement do for you?

No collection activity can be taken while you have a pending installment agreement.
Levies may be released while an installment agreement is pending.
In general Levies must be released when an installment agreement is approved.
You are protected from collection activities 30 days after a rejection for approval.
If you default or the installment agreement is terminated,you have another 30 days to appeal.
You can appeal a terminated, defaulted, or rejection of an installment agreement. No collection activity can be taken while in appeal.
Installment agreements may allow you to affordably pay down your liability without putting you in economic hardship.

Attempt to abate penalties

Depending on your situation, if you have reasonable cause for your penalties we may attempt to have the IRS forgive the penalties.

Reasonable Causes

The IRS lists many different reasons for penalty abatement, we will attempt to determine if one applies to you.

Serious Illness, Death, or Unavoidable Absence
Unable to Obtain Records
Incorrect Advice from a Competent Tax Professional
Incorrect Advice from the IRS
Fire, Casualty, Natural Disaster, Other Disturbance

Currently Non Collectible Status

Depending on your situation, it may be determined that you owe the IRS money but are not in a position to pay it. If this is the case, we can potentially obtain a currently non collectible status with the IRS. This involves working with us to establish a case that any payment amount to the IRS would be a hardship for your family. If we are able to establish this, the IRS will cease its attempts to collect the debt for a time, allowing you to get back on your feet. The debt still exists in this case, however the statute of limitations continues to run.

Offer In Compromise

When people think of offer in compromise the first thought tends to be “settle for pennies on the dollar”. That, while true in some rare instances, simply is not the case normally. An offer in compromise is a settlement but it is based on a complicated tax equation determining how the feasibility that the IRS will be able to collect the full amount of debt. We can help you calculate and prepare an offer in compromise (OIC) however this is typically a last resort. Prior to any OIC the taxpayer must be fully compliant, meaning all tax returns have been turned in. Therefore we will take the steps to ensure compliance and then move forward on action beyond that.