OFFER in COMPROMISE
- Doubt as to Liability Offer in Compromise - A doubt exists that the IRS assessed tax debt is correct. In all honesty, this is a long shot and not a practical way to go.
- Doubt as to Collectibility Offer in Compromise - Doubt exists that a financially struggling taxpayer could ever repay the full amount of the back tax owed. Many factors go into a successful IRS Offer in Compromise settlement. A taxpayer's minimum offer amount must be equal (or greater) than the reasonable collection potential (RCP) of the taxpayer. A taxpayer's reasonable collection potential, or RCP, is a complicated formula that takes into account a struggling taxpayer's realizable value in real and personal assets as well as future income potential. There are other factors involved as well. (Unless a taxpayer files for an Offer in Compromise that has "special circumstances," the settlement offer must equal or be greater than the IRS' reasonable collection potential (RCP). The IRS will place a "realizable value" on a taxpayer's assets. An assets "realizable value" is based on a quick sale (auction) minus what a taxpayer owes to the a secured creditor.)
- Effective Tax Administration Offer in Compromise - If there is no doubt that a taxpayer owes the back tax debt and there is no doubt that the taxpayer could pay their back tax debt in full, but special circumstances exist that make collection of the entire back tax debt would create an economic hardship or where public policy or equity considerations will provide sufficient reason to compromise. The burden of proof is on the taxpayer to show the IRS that their Offer in Compromise is qualified and eligible for public policy and equity considerations. The taxpayer must prove the IRS that their circumstances are compelling enough to warrant acceptance of the Offer settlement compared to other taxpayers in similar circumstances.
Last year, the IRS commissioner eased up on the requirements for a successful Offer in Compromise. A taxpayer can now earn up to $100,000 in early income and be eligible. There are many other changes that benefit taxpayers but the amount one can earn is dramatic. This new Offer in Compromise program is called a Streamlined Offer in Compromise. We have additional information on our previous Blogs that go into greater detail regarding the new regulations.
We are guided by our Christian Values. You can be sure that we will provide you with an honest evaluation and then the decision is yours as to what you want to do. Flat Fee Tax Service, Inc. does not employ salespeople and no one will ever pressure you to come aboard and become our client.
Negotiating an Offer in Compromise is complicated and involved. The IRS uses what is referred to as National Standards as well other criteria and will try and not take into account particular facts and circumstances as required by law. We are not saying that a taxpayer cannot achieve a successful Offer in Compromise on their own, but the chances are close to "slim and none."
- A initial $190.00 Retainer will start the work necessary to resolve your IRS problem.
- Monthly Fee Payments of $190.00 per month for 9 Months.
- A Total Fee of $1900.00