I am a former IRS Revenue Officer and teaching instructor with the IRS who has logged in 10 years with the feds.
I taught the Offer in Compromise IRS Tax Settlement Program at the IRS. Before any Offer in Compromise or settlement is filed it is imperative that you have a former IRS Agent file, look over, review it before IRS even looks at the Offer/Settlement.
IRS spends an average of 20 man hours working an Offer or Settlement. Basically, your financial life is under a IRS audit.
The financial statements you turn into IRS is reviewed in-depth for accuracy and truthfulness.
Here are some things you need to know before you pull the trigger.
Settling your tax debt with the IRS is called an Offer in Compromise.
The are three type of Offers in Compromise, the most common, the doubt as to collectibility.
I will only comment about the Collectability offers.
Things IRS will/ may review:
- IRS will google your name to see what pulls up.
- IRS will look for lawsuits or other possible means of finding assets.
- IRS will examine your credit card activity to see how much you have been charging and what you have been charging
- IRS may look to examine loan applications you have turned in the last couple years to see what assets were listed at that time.
- IRS will do a full DMV check
- IRS will run a boat and RV check
- IRS will run a State check on any and all corporations that you had owned.
- IRS will go by your home or place of business to see if the lifestyle makes sense
- IRS will fully examine your last 3 years worth of tax returns and look for income swings
- If accepted IRS will make your Offer in Compromise public record.
IRS does a very through and complete job in their review of offers in compromise/IRS Debt Settlement.
If you are looking to hiring a professional firm which I highly recommend, check on their experience level, ask if they have former IRS agents on staff and review their BBB rating.
Best of LUCK. accepts about 25% of all offers in Compromise or Tax Settlements.
