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Tax Law
What is an Offer in Compromise?
An agreement that resolves the taxpayer's tax debt is called an "offer in compromise". This agreement is between a taxpayer and the IRS. By accepting less than full payment under certain circumstances, the IRS has the authority to settle, or "compromise," federal tax liabilities.
For the complete OIC policy statement, see IRS Policy Statement P-5-100 . The objective of the OIC program is to accept a compromise when it is in the best interests of both the taxpayer and the government. This helps promote voluntary compliance with all future payment and filing requirements.
With over 50 + years of combined practice, Prostko & Santillán, LLC has the experience submitting Offers in Compromise. While all results are not typical, we have settled debts for less than the amount our clients originally owed, saving them thousands to millions of dollars. Despite our successful history, we advocate the saying, "Past Performance is not a Guarantee of Future Success."
Prostko & Santillán, LLC is different than other companies that offer OIC services in that, we will only prepare & submit Offers in Compromise that have a reasonable chance of success. That means that we will follow the IRS' guidelines while strongly advocating "real life" results for our clients. We don't promise a result that is not founded in law and/or fact. As a result, our success is based upon mutual respect of the process by all parties involved.
back to top Tax Liability Settlements
At Prostko & Santillán, LLC, we can assist you in protecting you and your business. IRS collection guidelines allow for the imposition of fines and penalties on unpaid taxes. These fines/penalties assessed on delinquent individual or corporate filings can dramatically increase the total amount owing in a short period of time.
Whether you owe taxes individually, or as a business owner, the IRS can take aggressive steps to enforce collection of delinquent taxes, including, but not limited to, the filing of federal tax liens, the sale of personal and/or real property of the taxpayer, bank levies and income attachment. Allow Prostko & Santillán, LLC to help you negotiate and/or stay collection proceedings against you. In most situations, we are able to reduce and/or eliminate the imposition of future interest or penalties.
back to top Eliminate Taxes
Under certain circumstances, personal income taxes can be eliminated through the filing of Bankruptcy (11 U.S.C. Section 507). Please contact our office at 724-770-1040 to determine whether you are eligible to eliminate your personal tax liability.
back to top Stay Tax Collection Proceedings & Garnishments
A Federal tax levy is the seizure of your property or bank account by the IRS to satisfy a tax liability. Having an IRS levy placed on your property or bank account can be financially and emotionally devastating for a small business owner or family.
If you take no action, the bank is required by law to freeze your assets and give control to the IRS. When that happens, your property will be foreclosed, or your bank account seized.
Prostko & Santillán, LLC can either: (1) Request a period of up to 90-days where the IRS will not contact you (called a Stay of Collection). The stay of collection will give you the ability to attempt to negotiate a better settlement for you; or (2) File a Bankruptcy Petition to stay collections if the IRS fails to voluntarily stay proceedings. The filing of a Bankruptcy petition stays all collection proceedings under Federal Law and grants the taxpayer a 3 - 5 year period to pay the non-dischargeable tax debt in full without incurring any future interest or penalties.
back to top IRS Audit Defense
IRS audits may be (1) face-to-face, or (2) by paper. Prostko & Santillán, LLC can assist you with both forms of audits through submitting explanatory letters with documents to support your tax returns or through a one-on-one meeting with the auditor. In the event that you receive a tax audit letter from the IRS, read the letter to see the nature of the tax audit problem. The IRS may want to audit the entire tax return or could audit just a portion of it, for example, home business expenses or automobile and travel expenses.
Generally, it is not in the taxpayer(s) best interest to represent themselves before in an IRS or State Audit. At Prostko & Santillán, LLC, we will assist you in dealing and/or negotiating with the IRS to maximize your deductions or to reduce your tax liabiilty.back to top Release IRS Liens
A Federal tax lien is an administrative action by the IRS to seize property to satisfy a tax liability. Under Federal Tax law, the filing of said lien attaches to all personal or real property of an individual or company. This also includes property held as Tenants by the Entirety in many Commonwealth states, ie, Michigan, Pennsylvania, Virginia, Massachusetts). A Federal tax levy is the actual seizure of that property. While, having an IRS lien or levy placed on your property, or bank account, can be financially and emotionally devastating for a small business owner or family, we at Prostko & Santillán, LLC can help you to eliminate the need by the IRS to file the tax lien or execute on the levy.
If a levy is issued against your bank account, the bank is required by law to freeze your assets and give control to the IRS. When that happens, you could find yourself unable to make your mortgage payments, or unable to pay your utilities and other bills, making a bad problem worse. We suggest that you contact a tax attorney to negotiate and/or assist in staying these collection activities by the IRS.back to top