Tax Settlements and Offers in Compromise
Explains IRS Offers in Compromise, installment agreements, and Currently Not Collectible status for taxpayers who cannot pay a tax debt in full.
Seattle Tax Debt Resolution Lawyer
We are often asked whether the IRS would prosecute a taxpayer criminally if the taxpayer is unable to pay the tax that is owed. In most cases, the answer is "no." Again, in most (but not all) cases, the IRS's goal is to get you to pay what you can of the balance that you owe. However, if intentional tax evasion becomes an issue, criminal prosecution could become a reality for some taxpayers. If you cannot pay your back taxes and accumulated penalties and interest, contact the law firm of Lana Kurilova Rich PLLC to explore the possibility of negotiating a payment plan or a negotiated settlement for less than the amount you owe.
We represent individuals and businesses in resolving tax debts owed to the IRS or the taxing agencies of the State of Washington. Based in Bellevue, our experienced Seattle tax debt resolution attorney serves the Greater Seattle area, as well as clients statewide and nationwide. Call us at (425) 289-0629 for an initial phone consultation.
Explore Your Tax Debt Options With Our Washington State Tax Settlement Attorney
Installment Agreements (Payment Plans)
If you have some ability to pay, but cannot satisfy the tax obligation with a lump sum payment , the IRS or the Washington Department of Revenue will usually agree to an installment agreement, commonly known as a payment plan. We assess your financials to ensure that you can make the monthly or quarterly payments without creating hardship, and we negotiate to halt or cap the interest and penalties whenever possible. We may also be able to help you avoid a federal tax lien (commonly filed by the IRS) or a tax warrant (filed by the Washington State Department of Revenue).
The Offer in Compromise
This settlement option is sometimes misunderstood. You generally cannot settle with the IRS "for pennies on the dollar" (like some TV commercials might advertise) if the government knows you have the means to pay, including liquidating other assets. The IRS Offer in Compromise specialists complete very thorough research of your income and assets, and they often disagree with your proposed valuation of those assets. However, if you truly do not have the means to pay the IRS, the agency would rather get something than nothing. Offers in compromise are based on your ability to pay. While "pennies on the dollar" is rare, they are possible for some taxpayers. The amount of your offer will largely depend on your total net worth. We will determine whether you have a good chance of filing a successful Offer, and if so, how much you should offer the IRS. Once the IRS accepts your offer and you have paid the offered amount, the remaining taxes are forgiven. However, you must remain in filing in payment compliance for subsequent years.
Washington State tax settlement lawyer Lana Rich brings many years of experience in tax controversies, and she explains your options in a language you can understand. Contact us today for an initial phone assessment. We can quickly determine if you would likely qualify for an offer in compromise, and if not, we will recommend another course of action to resolve your tax debt.
About Attorney Lana Kurilova Rich
- Washington tax attorney since 2003: Lana Kurilova Rich has been admitted to the Washington State Bar since 2003 and has focused her practice on tax law since opening Lana Kurilova Rich, PLLC the same year.
- Master of Laws in Taxation (LL.M.): Lana earned her LL.M. in Taxation from the University of Washington School of Law in 2007 in addition to her J.D. from Seattle University School of Law in 2003.
- Former Court of Appeals law clerk: Lana served as Law Clerk to the Honorable Elaine Houghton of the Washington State Court of Appeals, Division II.
- Bilingual: English and Russian: Born and raised in Russia, Lana is fluent in Russian and licensed to practice law in the Russian Federation in addition to Washington State.
- Federal, state, and international scope: Lana represents clients before the IRS, Washington State agencies (DOR, ESD, and L&I), and on cross-border tax matters including FBAR and Form 8938 compliance.
- Direct attorney communication: Clients work directly with Lana Kurilova Rich, not a routing desk. Calls and emails are returned promptly throughout the engagement.
- Pro bono Low Income Taxpayer Clinic: Lana has volunteered with the Low Income Taxpayer Clinic since 2006, helping qualifying taxpayers resolve IRS disputes at no cost.
- Integrated tax preparation and bookkeeping: The firm provides federal and state tax preparation alongside legal representation, reducing handoffs and accelerating resolution.
We invite you to contact our Bellevue, Washington, law office today by phone or by e-mail to discuss your case with our experienced tax lawyer. We are here to help.