COMPROMISE - a program to compromise IRS tax debt - settle with
the IRS - avoid wage garnishments and IRS levy
IRS Offer in Compromise, IRS Levy, IRS
Liens, IRS Garnishments; State of California Offer in Compromise,
Levies, Liens and Garnishments - Solutions.
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Announces More Flexible Offer-in-Compromise Terms to ...
for New Offer in Compromise Rules 9/2012
What is an Offer in Compromise?
An IRS offer in compromise is an agreement between a taxpayer
and the Internal Revenue Service (IRS) that resolves a taxpayer's
tax liability. The IRS has the authority to settle, or compromise,
federal tax liabilities by accepting less than full payment under
certain circumstances. The IRS may legally compromise for one of
the following reasons:
Doubt as to Liability Offer in Compromise: Doubt
exists that the assessed tax is correct.
Doubt as to Collectibility Offer in Compromise: Doubt
exists that the taxpayer could ever pay the full amount of
tax owed. The minimum offer amount must generally be equal
to (or greater than) the taxpayer's reasonable collection
potential (RCP). The RCP is defined as the total of the
taxpayer's realizable value in real and personal assets,
plus his/her future income.
Unless the taxpayer files an offer in compromise claiming
special circumstances, the offered amount must equal or exceed
the reasonable collection potential. Realizable value is the
asset's quick sale value (amount which could be reasonably
expected through the sale of the asset) minus what the taxpayer
owes to a secured creditor.
- Effective Tax Administration Offer in Compromise:
There is no doubt that the tax is correct and no doubt that
the amount owed could be collected in full, but exceptional
circumstances exist such that collection of the full amount
would create economic hardship or where compelling public
policy or equity considerations provide sufficient basis for
compromise. The taxpayer bears the burden of proof to
show their offer in compromise qualifies for public policy or
equity considerations. They must show that their
circumstances are compelling enough to justify acceptance of
their offer in compromise compared to other taxpayers in
Offer in Compromise and IRS Policy:
Policy Statement P-5-100 states:
The Service will accept an offer in compromise when it is unlikely
that the tax liability can be collected in full and the amount
offered reasonably reflects collection potential. An offer in
compromise is a legitimate alternative to declaring a case
currently not collectible or to a protracted installment
agreement. The goal is to achieve collection of what is
potentially collectible at the earliest possible time and at the
least cost to the Government. The Toll Free Number for an Offer
in Compromise is 1-866-482-9707.
Submit your Free
Offer in Compromise Consultation request
IRS Offer in Compromise Package (Cost $800.00) from TaxSOS.com
||Check out the competition about the IRS Offer
in Compromise program.. After you speak to them,
Please read about the IRS Offer in
Compromise program, below (Why an Offer in Compromise, and will it work
for you?). It is important that you learn
about the process and what is actually involved. If you have
questions, please call me. If what the competition tells you
sounds to good to be true, it probably is.
TaxSOS.com is offering a
Streamlined IRS Offer in Compromise Package at a reduced price.
Do you owe a lot to the IRS but can't afford to
pay thousands of dollars for a Tax Attorney prepared and
negotiated Offer in Compromise? Call today and find
out if your facts and circumstances qualify for this special
processing package. If you do, your cost will be $800.00.
In the event your particular facts and
circumstances don't qualify for the TaxSOS.com Streamlined IRS
Offer in Compromise Package, you will be advised of the cost
for your particular situation. There is no obligation. If you have
decided to fix your tax problem, then give TaxSOS.com a call.
Why an Offer in Compromise, and will it work
As you have most probably discovered, the IRS Offer in Compromise is
appropriate for solving many tax problem situations. Certainly,
everyone would like to settle for "pennies on the
The reality is that for some taxpayers an Offer in
Compromise is a viable option. For others it is not. You should
first determine whether you qualify. Discussing your case
with an experienced Tax Attorney is the first step.
Revenue Service has issued a consumer alert advising taxpayers
to beware of promoters’ claims that tax debts can be settled for
“pennies on the dollar” through the Offer in Compromise
Program. This IRS advises that such promoters make money by
inappropriately advising indebted taxpayers to file an application
for an offer in compromise with the IRS, promising unrealistic
results, even when the taxpayers do not meet the requirements of
the program. This bad advice costs taxpayers money and time.
For those of you who qualify for an Offer in
Compromise, your tax debt
may be Settled for Pennies on the Dollar, your tax liens will be
released, and all collection action on the old tax debt will be stopped.
Trying to accomplish an Offer in Compromise without professional
assistance is generally not recommended.
The IRS has a large amount of unsettled tax
accounts. The IRS policies and
procedures for collection used in the past cost the government
millions chasing after taxpayers that would not produce any
results. The Offer in Compromise program makes economic sense for
both the government and you, the taxpayer. For example, it helps
you get back into compliance (paying and filing current and future
tax obligations). For the government, it means current tax
collections and revenue (and getting taxpayers into routine
compliance). It affords you a means by which you can stop
worrying about past due tax obligations which both you and
the government realize you can never pay off in full.
However, negotiating an Offer in Compromise can become very
involved. The IRS seeks to impose National and other standards on
taxpayers without taking into account a taxpayers particular facts
and circumstances as required by the law.
|IRS Offer In Compromise - IRM
See Offer in Compromise IRM
Can you relate to that vicious cycle of being
afraid to make money because of the IRS monster looming over every
waking hour of your day? Have you been in the position of making
payments on "back" taxes hoping to appease the IRS, and
then realize that your payments didn't reduce your debt? Do you
then find that your situation has worsened because you didn't pay
enough in current year taxes, having used the money to pay on the
old taxes? Now, you not only owe for another tax year, but the IRS
views you as "pyramiding".
The Offer in Compromise program may be a solution
for you. But, merely submitting an Offer in Compromise is not
enough. Even getting an Offer accepted is not enough. You must set
up a PLAN to ensure that all current and future taxes are full
paid, and all returns timely filed. Under an accepted Offer, you
agree to comply with all provisions of the Internal Revenue Code
relating to filing returns and paying the required taxes for at
least 5 (five) years. Thus, if you fail to meet such requirement,
the "back" tax obligations return. My office provides
experienced legal services in helping you set up a plan so that the Offer
becomes a long term solution.
The Offer in Compromise program may be right for you. Please
call to discuss your situation and a plan of action for you.
|Some links and
information are provided. However, a tax professional, who
routinely deals with IRS collection matters and Offers in
Compromise, should be consulted before any action is taken.
IN COMPROMISE WITH IRS: hardship, fairness, and equity. Public
Policy and promoting Effective Tax Administration.
- Historically, the Service's compromise authority has been
limited to cases in which either doubt as to collectibility
or doubt as to liability or both is established. The
Internal Revenue Service Restructuring and Reform Act of
1998, however, has expanded the Service's compromise
authority. The Service now has the authority to compromise,
where appropriate, cases involving issues such as equity,
hardship, and public policy. The Service may now compromise
cases involving equity and hardship issues where compromise
would "promote effective tax administration."
- The effective tax administration basis for compromise
applies only where the taxpayer does not meet the
requirements for doubt as to liability or doubt as to
- Refer to Internal
Revenue Manual Provisions.
|The above limited information is intended for
informational purposes only. If legal advice or other expert
assistance is required, the services of a competent professional should
be sought, and this general information should not be relied upon
without such professional assistance.
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CAUTION: There are many providers of services on the
internet who will submit your Offer in Compromise forms.
However, such providers merely have you complete the forms.
These bargain basement "Offer experts" may be only
mailing the forms you prepare to the Internal Revenue Service.
Thus, they have done nothing for you. In fact, they may end up
costing you more because critical review and analysis has not
been done. When completing the financial statement forms and
making the Offer, you are painting a financial picture that will
determine the amount of an acceptable Offer. Unless your
representative has the necessary skills and experience, you may
have paid a small fee, only to be subjected to settling for more
under the Offer than you otherwise should have. Your
professional must have experience in: calculating your income
and expenses; determining the amount of the offer you should
make; valuing your assets and liabilities; reviewing joint
ownership considerations; working with the tax law and IRS
internal procedures; arguing the facts and the law, and
negotiating with the IRS.
The IRS has a history of intimidation, and let's face it,
they will take advantage of any taxpayer who represents himself,
and even a taxpayer's advocate who is weak. Remember, IRS Offer
Specialists generally have "collection" backgrounds
and they come at you from the perspective of getting as much
money as they can.
In the end analysis, you should measure the benefits
you derive from the final result. For a taxpayer to engage
someone who merely mails in your Offer forms for a $300.00 fee,
what at first blush looked like "such a deal", may in
reality end up costing you many thousands of dollars more
because you didn't choose a tax professional who would negotiate
the best settlement for you.
contact A. Nathan Zeliff, Attorney at Law