Sara F Gonzalez's Next Moves After Reaching an Agreement With The IRS

Let's speak about what happens AFTER we've reached an agreement with the IRS on your behalf.

After all, isn't that what we're aiming for here?

So... The IRS acknowledged that you would be unable to repay all of your taxes and that a settlement would be in everyone's best interests.

Now we must ensure that the agreement remains in place...

Sara F Gonzalez's Next Moves After Reaching an Agreement With The IRS

“Adversity doesn’t test character, it reveals it.” James Lane Allen

After you've reached an agreement with the IRS on an offer in compromise, there are four major things you should be aware of...

Now is the time to keep up with your taxes.

For the next five years, at the very least. Hopefully indefinitely.

Let's face it: when you've settled with the IRS, you don't want to hear from them again, and they, believe it or not, don't want to see you. As a result, when your compromise has been accepted, you must comply with your tax filing and payment requirements for the next five years. You got a good deal from the IRS, and you don't want to have to use it again anytime soon. As a result, when your compromise has been accepted, the best course of action is to strictly follow all of your IRS filing and payment responsibilities.

We're here to assist you with that.

Ouch: If you get a refund this year, you won’t keep it.

The norm is that the IRS will keep any refund you are due for the year in which your offer in compromise is accepted.

Let's imagine the IRS notified you on May 21, 2018 that your offer in compromise was approved (yippee). So you meticulously manage your tax obligations this year, and then in 2019, you discover that you overpaid your 2018 taxes and are due a return from the IRS.

That refund will be kept by the IRS and will not be delivered to you.

The loss of any tax refunds in whatever year the offer is pending, up to acceptance, is a condition of practically every accepted offer in compromise. Unfortunately, you won't be able to apply that return to your settlement.

This is only true for the year in which you accepted your offer. You WILL be able to request a refund in the future.

So take a look at your withholding now and make any necessary adjustments to avoid overpaying your taxes.

However, don't be too aggressive, as you don't want to end up with a large charge.

Phew. Tax liens from the federal government have been released!

An agreed-upon settlement compels the IRS to remove the dreaded lien from your credit record, allowing you to start restoring your credit score. Your Charlotte property (including your house) will be free of liens, and the lien will no longer impact your ability to buy a home in Charlotte.

Important note: the lien is only released after the last payment has been made and the settlement has been made permanent.

It's time to acquire your transcript so you can keep track of your grades.

Once you've paid your final payment, you'll want to save records of the transaction. Just in case there's ever a "issue," you know. We can obtain a transcript on your behalf (or you may call the IRS yourself — have fun!) that will authoritatively certify that your lien has been removed and that you are in good standing with the IRS.

Most of all, it’s time to let the relief of this weight being lifted from your shoulders really, finally sink in.

And we’d love to help you make this happen. We’re in your corner.


Sara F Gonzalez
(704) 599-3355
Kohari & Gonzalez PLLC

How can we help?

If you have any questions and would like to connect with a team member please call (704) 599-3355 or contact an advisor below.

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