Wednesday, November 2, 2011

IRS GOV -- How to Get Your Offer in Compromise Approved by the IRS

HOW TO GET

YOUR

OFFER in COMPROMISE

APPROVED





An IRS settlement through the Offer in Compromise program is an agreement between you, the taxpayer, and the IRS that allows you to settle your back tax debt for less than you originally owed. It is an option for you, the taxpayer, who is struggling financially and is unable to pay your back tax debt in full as well as taxpayers who will have a financial hardship if put into an IRS Installment Agreement. 

The IRS will use a very complicated formula to determine your ability to pay your tax liability, based on your income, allowable expenses, asset equity, your age, future income potential, the Statute of Limitations as well as a host of other factors. When you put these factors together, it will be determined if you qualify for an Offer in Compromise.

The IRS is still "the IRS" and will try and reject your Offer in Compromise for "procedural errors" and the IRS will try and get you to have a relative "pony up" the money to pay your tax debt.

HOW DOES AN OFFER in COMPROMISE WORK

The IRS formula for an Offer in Compromise will determine what percentage of your outstanding back tax debt it can reasonably collect over the next 2 ( two) years. The IRS calls this period of time as "reasonable collection potential." 

To qualify for an IRS settlement through the Offer in Compromise program, you, the taxpayer, will have to agree to the following:
  • You, the taxpayer, will pay in full (you can make monthly installment payments) the amount of your proposed offer in your Offer in Compromise.
  • You, the taxpayer, will file and pay your taxes on time for 5 straight years. You will be on tax probation and if you fail to do this, the IRS will reinstate your original tax debt (including penalties and interest) faster that you can blink. 
  • You, the taxpayer, will allow the IRS to keep any payments, tax refunds and credits that were applied to your back tax debt prior to your submission of your Offer in Compromise.
  • You, the taxpayer, will allow the IRS to keep any and all tax refunds you would have received during the calendar year that your Offer in Compromise was approved.
CAN YOU PREPARE YOUR OWN

OFFER in COMPROMISE

Yes you can. Do we, at Flat Fee Tax Service, Inc., recommend it? Absolutely not and this is why. The IRS is the world's most powerful collection agency and is a gigantic bureaucracy and their 1st job is to collect as much money as possible for the Federal Government. The IRS is not here to help you. 

The IRS will initially look at your Offer in Compromise to see if you "dotted the I's and crossed all of the T's." If you did not, your Offer in Compromise will be rejected as "unprocessable" and you will not be given a specific reason for the rejection. 

If you clear that hurdle, the IRS will look at your Offer in Compromise and if you are off in the amount of your settlement, it will be rejected. Do you know the IRS formula for an IRS settlement? We didn't think so.

The IRS will hit you with multiple requests for documentation and if you do not give them what the IRS requests on time (1 day off and you will be rejected), your Offer in Compromise will be "trashed canned."

The amount of documents needed for a successful Offer in Compromise is extensive. Offer in Compromise experience in how and what information to submit is critical. An experienced IRS Tax Attorney, who will not over charge you, will be well worth your investment.

If you insist in filing your own Offer in Compromise, do the following:
  1. Prepare your IRS Form 433-A as well as an IRS Form 656.
  2. Prepare your IRS Form 433-B as well as an IRS Form 433-A and IRS Form 656 if you are self-employed.
  3. Prepare a document detailing why you think your Offer in Compromise is necessary.
  4. Carefully prepare all of your documents.
  5. Present all of your material and back up information in a very clear and logical format.
Your Offer in Compromise process will take 1 (one) to 2 (two) years to complete. It used to take 6 (six) months but that was before the economic downturn. There has been a significant  increase in the amount of Offers submitted.

THE IRS APPROVES APPROXIMATELY 34% OF ALL

THE 

OFFER in COMPROMISES

SUBMITTED

As we wrote previously, the IRS will look for any reason to reject your Offer in Compromise. Most rejections are due to an inexperienced taxpayer trying to complete their own Offer in Compromise and consequently making procedural errors or an inexperienced taxpayer will "low-ball" the settlement offer because they did not know the how to calculate the IRS formula for an Offer in Compromise. Another reason for a rejection of an Offer in Compromise is the filing of frivolous settlements. Don't file a frivolous Offer in Compromise. It will only agitate the IRS and the IRS will not take kindly to that. You do not need to compound your IRS problem.


I am Dave Rosa, the V.P. of Client Relations at Flat Fee Tax Service, Inc. I will be conducting your free and confidential consultation. During our evaluation of your tax problem, I can determine if you are indeed eligible and qualified for an IRS settlement through the Offer in Compromise program. I have no problem telling you that you are not qualified. Either you are or you are not. If you are not qualified for an Offer in Compromise, I will provide you with an alternative action plan to resolve your back tax debt.

Flat Fee Tax Service, Inc. has clients throughout our 50 (fifty) states as well as from around the world. We have never had a client complaint and are guided by our Christian Values.

WHY FLAT FEE TAX SERVICE, INC. FOR YOUR OFFER in COMPROMISE:
  • Christian Values
  • No Complaints
  • Experienced IRS Tax Attorneys
  • Reliable and Credible
  • Results
FLAT FEE TAX SERVICE, INC. FEES:
  • Flat and Fixed
  • Fair and Reasonable
  • Low Initial Retainer
  • Low Monthly Payments That Will Fit Your Budget

THE FLAT FEE IRS SETTLEMENT TEAM - Christian Values

THE FLAT FEE IRS SETTLEMENT TEAM - No Complaints

THE FLAT FEE IRS SETTLEMENT TEAM - Results

FLAT FEE TAX SERVICE, INC.

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1 comment:

  1. How can you get an IRS settlement and have your Offer in Compromise approved? You can contact Flat Fee Tax Service, Inc. and find out.

    ReplyDelete

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