Resolve unfiled tax returns, avoid penalties, and get back in good standing with the IRS.
Protect your wages and assets by stopping IRS collections before they escalate.
FAQS
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Even if you are experiencing severe financial hardship, Arizona requires that your offer include some dollar amount. Offers stating “zero” or leaving the payment field blank will not be considered. You must determine and propose the maximum amount you can reasonably afford. The state will evaluate your financial situation and decide whether accepting that reduced amount is appropriate under Arizona law.
Yes, Arizona recommends that taxpayers continue making scheduled payments on any active installment agreement while the offer in compromise is under review. Making payments demonstrates good faith and ongoing compliance. If your offer is accepted, the remaining balance on the installment plan will be adjusted or forgiven based on the terms of the compromise. If your offer is denied, your plan will remain active.
Once your offer is accepted and the full amount is paid, the Arizona Department of Revenue will release any tax lien related to the resolved tax period. The release typically occurs once all terms of the agreement have been satisfied. This resolution helps restore your financial standing by lifting claims against your property or bank accounts, allowing you to move forward without continued enforcement action.
If your offer is denied, Arizona will notify you by mail. Although there is no formal appeal process, you may reapply if your financial situation changes or if you can provide additional documentation. The full tax liability remains due during this time, and the department may resume collection activities, including penalties and interest. Consider alternative options like an installment agreement if a compromise is not approved.
Yes, you can apply for both a state and federal offer in compromise at the same time. Arizona asks about any pending IRS offers on its application. While each program has separate requirements, submitting both applications can strengthen your overall case if you demonstrate financial hardship and a limited ability to pay. Be sure to comply with all documentation and eligibility criteria for both agencies.
Arizona typically reviews an offer in compromise within 90 days of submission. This is significantly faster than the IRS, which may take up to 24 months. However, the review may be delayed if your documents are incomplete or additional information is needed. To avoid unnecessary setbacks, ensure all financial records and required forms are accurate and current when you submit your application.
It is a tax service.
Yes, once you file all back returns, you become eligible for relief programs like Offer in Compromise, Installment Agreements, and penalty abatement—helping reduce or eliminate your overall liability.
You need Forms W-2, 1099, or substitute wage and income transcripts for each year. If records are lost, you can request IRS Wage & Income Transcripts to reconstruct your filing history.
The IRS imposes failure-to-file penalties (up to 25% of the unpaid tax), failure-to-pay penalties (0.5% per month), and interest on both. Filing back returns promptly can stop new penalties and interest from accruing.
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