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. This results
in phantom cash flow and a higher Offer amount.
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.
Call in your TaxSOS today.
Submit your Free
Offer in Compromise Consultation request