I am a former IRS agent and teaching instructor.
As a former IRS agent not only did I worked the offer of compromise program but I taught it to agents moving forward in their position to understand and accept and deny offers in compromise.
I have been in practice since 1982 and A+ rated by the Better Business Bureau. I have worked thousands and thousands of cases.
Due to my experience both in the field, as an agent and a teaching instructor, I know the offer in compromise program inside and out.
The offer in compromise program is a very specialized field of tax expertise.
It is important to know that the average time spent on the acceptance of an offer in compromise is approximately 20 hours.
There is a voluminous amount of work that the IRS agent does before they can settle the case plus the accepted offer has to go up and down the line with signatures before the government can accept that offer in compromise.
You should know that every offer in compromise is open the public expunction at the regional offices.
IRS is very cautious on what offer they accept. IRS considers it a privilege and not a right to have your taxes discounted by the federal government.
It’s best to fill out the pre-qualifier tool or call a true expert before you send in a offer in compromise.
Call me for a free initial tax consultation and I will walk you through the process.
If your case cannot be resolved by offer in compromise program,there are two other programs taxpayers can qualify for.
The first is the IRS hardship and the second is the IRS payment plan. Keep in mind your financial statement is the sole determining factor on how IRS is going to closure case.
Call me today for a free initial tax consultation
What is a Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS will consider your unique set of facts and circumstances before accepting an OIC.
IRS will look at some of the following:
1. Ability to pay;
3. Expenses; and
4. Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone. You truly must be an eligible candidate before IRS will accept the offer in compromise. You can walk to the pre-qualifier or find a true certified IRS offer specialist to see whether you have a chance to get your offer accepted.
Make sure you are eligible for the OIC
The IRS will return any newly filed Offer in Compromise (OIC) application if you have not filed all required tax returns and have not made any required estimated payments.
Any application fee included with the OIC will also be returned. Any initial payment required with the returned application will be applied to reduce your balance due. This policy does not apply to current year tax returns if there is a valid extension on file.
You are not eligible if you are in an open bankruptcy proceeding.
Submit your offer like this.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:
1.Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
2.Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
3.$186 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option to pay your offer in compromise.
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash:
Submit an initial payment of 20 percent of the total offer amount with your application. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid in five or fewer payments.
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process of an offer in compromise
While your offer is being evaluated:
Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
A Notice of Federal Tax Lien may be filed;
Other collection activities are suspended;
The legal assessment and collection period is extended;
Make all required payments associated with your offer;
You are not required to make payments on an existing installment agreement; and
Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
If your offer is accepted
You must meet all the Offer Terms listed in Section 7 of Form 656, including filing all required tax returns and making all payments;
Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;
Federal tax liens are not released until your offer terms are satisfied; and
Certain offer information is available for public review by requesting a copy of a public inspection file.
If your offer is rejected
You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711 (PDF).
The IRS Independent Office of Appeals provides additional assistance on appealing your rejected offer.
Call us today to learn more about the offer in compromise and speak to true IRS tax experts.
IRS Offer in Compromise Expert + Former IRS Offer Specialist + Former IRS Agent Revenue Officer + Ft.Lauderdale, Miami, Palm Beach, Boca Raton