Offer in Compromise
irs-tax-debt-relief-offer-in-compromise.com

Ralph Sayers, CPA

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If you qualify, an Offer in Compromise (OIC) can be the best solution for settling your tax debt.  Because the potential for saving you a lot of money is so great on accepted offers, we work very hard to see if you qualify for an OIC and we have extensive expertise gained from years of in depth experience planning, preparing, and negotiating Offers in Compromise.

The Offer in Compromise is the most effective way to reduce your IRS tax debt.  If you qualify, you will only be required to pay a small part of what you now owe.  To find out if you qualify: Call us now for your free consultation.  941-723-9106.

Before sending the IRS an Offer in Compromise, it is important to understand how the Offer in Compromise (OIC) program can work for you.  You need to understand that from the IRS's point of view, accepting a settlement is a business decision.

 It costs the IRS a lot of money to keep after people who owe taxes, trying to get them to pay.  For people who can't pay their tax debt in full, the IRS has determined that it is more cost effective (and politically acceptable) for them to take a discounted settlement now, rather than waste resources trying to collect from taxpayers who will probably never have the money to pay in full anyway.

It is also important to realize that making an Offer in Compromise is not a negotiation.  The IRS uses a complex series of formulas to calculate what they believe they could legally collect from you over the next several years.  This amount is generally, what you must offer to the IRS.  These formulas are very sensitive to a number of factors and can make a dramatic difference in how much you must offer.  A monthly income or expense of as little as $100 can increase or decrease your Offer amount by as much as $5,000.  We make sure that you take advantage of all the options available to insure that your Offer in Compromise is for the least amount possible. 

Finally, the IRS wants to encourage future compliance.  When you make an Offer in Compromise, you must sign a firm contract with the IRS, the basic terms of which state that the IRS is willing to forgive your entire tax debt so long as you agree to pay them the amount of your Offer settlement and agree to file and pay your future taxes on time for at least the next five years.  The great part about this is that once your Offer in Compromise is signed and accepted, the IRS cannot come back and change your payments or charge you additional interest or penalties for the tax years you settled on.

We will thoroughly analyze your tax situation, leaving no stone unturned and complete all of the paperwork required by the IRS to submit an Offer in Compromise.  If necessary, we will also complete all of the additional paperwork required to stop IRS collections on your case.  When your paperwork is complete, we send it to you to review, sign and mail to the IRS.  We work diligently for you so that your IRS liability is resolved for the lowest amount possible under IRS guidelines.

After you submit your Offer in Compromise, it generally takes the IRS six to nine months to process, investigate and accept it.  This will give you more time to put together the money to pay your settlement. 

Recently the IRS has begun accepting payment plans on Offer in Compromise settlements, so you will not necessarily need to come up with all of the money at once.  We are skilled at devising "tiered" agreements to meet your needs and get your offer accepted where others can't.

After your offer is accepted, all you have to do is stay current on your taxes and payments for the next five years and you will never have to worry about IRS tax debt again.

Once your Offer in Compromise is paid in full to the IRS, you will be released from your entire tax debt permanently and all Federal Tax Liens held against your name, credit, and property will be released. 

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The main way most people qualify for an offer is called "Doubt as to Collectibility".  In other words, it is doubtful the IRS will ever be able to collect the debt.

Another way to qualify is called "Doubt as to Liability" and it isn't used successfully very often because it means that you doubt that you owe the tax… Not that you doubt that you can pay it but that you don't even that you owe it in the first place. In other words, you are not liable for it from the get-go. 

Well, if you don't owe the tax it is usually easier to do something else, like file an amended return.  But besides that, there is a big problem with Doubt as to Liability cases and it is a legal one....There is always a legal presumption that you do owe any tax that has reached the legal standard of being "assessed".  This presumption is very hard to overcome.  So, you must have a compelling reason that proves you don't owe the tax. This is why Doubt as to Liability is rarely used.

There is a third ground for acceptance called “Effective Tax Administration”.  That is a mouthful of words that boil down to reasons like being disabled or having health problems.

Your financial profile is the main determining factor in winning any offer case.  The IRS will look at Assets, Liabilities and Income and Expenses for a 3-month period of time or "window". 

Doing this work right is very important and it is mostly accounting work.  The accounting work involved is the cornerstone of your entire claim.  You need solid, traceable, accurate records and documentation in your case file.  You need a well-organized file with a built in audit trail.  Your chance of winning is vastly improved if your case file contains all these features because the offer process is investigative in nature. 

The IRS questions every single number on your offer and if there is no way for them to see easily and clearly just how your numbers can be verified, then you lose.  It is as simple as that.  This is one reason why 74% of claims, are lost.  There are of course other reasons as well, like tax resolution companies selling people a bill of goods and individuals sending in their own offers in desperation.

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A very important side note:

If you need access to the court then yes, you need a lawyer, but think about it first.  If you think you may need to file bankruptcy then you need a local lawyer not a lawyer on the internet because your bankruptcy must be filed in the court having jurisdiction in your area.  A lawyer in another part of the country can't file your case.  Also, bankruptcy cases in your region will be settled using precedent in your region, not somewhere else and it can be very different, so you really are wasting your time even talking to a lawyer out of your area except in the most general terms.

If you want to file bankruptcy, yes you do need to see a lawyer, a local lawyer.  And if we think, you need to see a lawyer we will tell you up-front and tell you why.

     We strongly believe there are serious problems with hiring lawyers to do what is essentially tax preparation work and filing an offer in compromise is tax preparation work.  Preparing your offer is mostly a numbers game ...it is all about the numbers.  The law is settled in most of the cases so most people don't need access to tax court.  Your case is going to be decided based upon the numbers and your ability to substantiate them. 

When we prepare your offer package, we first have all your work journalized then summarized on one simple, readable page.  The journal and summary work together and tie into your original source documents in a way that if the IRS denies any of your deductions or questions anything, we have the ability to reinstate every item they question because we can tell them how to find what they need.  There is a clear audit trail that makes it easy for the IRS to follow and these are auditing methods and techniques.  We can back up every single item.  This stops them from tearing apart your offer piece by piece.

Do you think a lawyer can do that?  Do you think a lawyers hired hands can do that?  No, we don't think so because they simply don't have the training or the skill sets to pull it off.  The skills that will make your offer pack a real punch are accounting and auditing skills.  

If the offer specialist finds any part of your package un-verifiable then that part will not be decided in your favor.  If your information is hard to understand, they will simply reject or deny your offer.  Offers are rejected every day for this simple reason--the offer package is a mess.  The numbers cannot be verified because they cannot be traced from the Form to the supporting documents in the file; there simply is no discernable trail. 

Journals detailing important numerical data are a valuable part of your offer package, and a ledger or similar accounting report is powerfully persuasive to the IRS.  The heart of your offer package, the Form 433A is all about your assets, your liabilities, income and expenses and this critical document is all about accounting, not law.  These are accounting tools and accounting practices that are essential to your success. 

In addition, the IRS does everything using forms, yes, everything... they have to use forms because it is a huge bureaucracy, and accountants who are also tax preparers know their way around the IRS forms because we use them every day.  Self-important lawyers who use legalistic jargon and bluster do not help you and frankly we have seen many instances where their 'legal-speak' and arrogance have caused people more harm than good. 

The Offer in Compromise Form 656 and The Collection Information Statement Form 433A are primarily accounting documents, they are not legal documents, certainly not in the sense where words are legalistically important.  The words that are important in your offer are the words that tell your story in the best light possible and words that portray you and your family in the most human and elemental way.  These are the words that count and they are not, legal words.  Unless your offer is based upon Effective Tax Administration then no matter how good the words are, it is the numbers that count the most and if you want to win, they had better add up. 

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IRS OFFER IN COMPROMISE

If you qualify for the IRS Offer in Compromise Program, your debt with the government can be reduced to a minimum, sometimes a fraction of what you owe. 

An 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. 

Since an Offer in Compromise yields the most optimal results, it is the option we always consider first.  The IRS, on the other hand only considers an Offer in Compromise after all other collection alternatives have been explored. 

In the simplest language, the minimum offer amount must generally be equal to, or greater than, what the IRS believes it can 'reasonably' collect from you. 

Resolve Your Tax Problems

Before you make another move, you need to know what your options are.  Call Ralph now for your free tax analysis consultation:  941-723-9106.

The things the IRS does to collect your money are painful, costly, and frustrating.

Resolve your IRS tax situation quickly, painlessly and affordably.

Take advantage of the proven step-by-step approach we use to work directly with you to resolve your specific tax problems. 

We will get the IRS off your back and stop them from harassing you.

Call for Peace of Mind!

941-723-9106

Step One Your Free Consultation :

When you call we will provide you with a free consultation and tax analysis that will:

·                       Help you understand what your options are and what the IRS can and cannot do to collect from you.

·                       You will gain a deeper understanding of the situation.  We will answer your questions so that you will know things you do not know now...things you need to know.

·                       You will find the very best solution for your situation.

We work directly with the IRS for you.  We have over 75 years combined experience helping people just like you.  We work hard for you to:

·         Take control of your tax problem.

·         Stop the IRS from garnishing your wages.

·         Stop the IRS from levying your bank account.

·         Reduce your taxes .

·         Abate penalties and interest.

·         Stop IRS from placing a lien on your property.

·         Help you get your life back on track.

·         Stop the pain you are going through.

·         Resolve payroll tax problems.

You may have rights you don’t even know about. 

We will tell you the truth about your settlement options and you will always get clear, concise answers, not IRS jargon and not lawyer-speak.   

We work hard to settle your IRS problem and help you get a fresh start and renew your peace of mind.

We will answer any questions about your case that may arise during the resolution process.  You will never be left in the dark about the status of your case.

Call Now for Peace of Mind!

941-723-9106

Resolve Your Tax Problems

Before you make another move, you need to know what your options are. Call Ralph now for your free tax analysis consultation:  941-723-9106.