A very interesting fact is happening, IRS is accepting less offers in compromise. In 2018 the IRS received 59,000 offers an accepted 23,000.
Sadly in 2019 the IRS received 54,000 offers in compromise and accepted 17,000.
The question is, What can be contributing to this fact?
As a former IRS agent teaching instructor with Internal Revenue Service I think there are several factors that can be contributing to less offers in compromise being accepted.
The offer in compromise is an art and everybody is thinking the IRS will accept offers in compromise for pennies on the dollar when they do not qualify.
I believe much of this trend is due to the advertising that many companies are promoting is that they can settle tax debt no matter what the facts and circumstances.
With that said, I urge all taxpayers to fill out the IRS pre-qualifier tool to find out if in fact of eligibility for the offer in compromise.
The pre-qualifier tool is found on our website. Or you can call us for a free initial tax consultation.
Other factors that contribute also is the quality of the offer in compromise.
I have heard from Agents that work offers taxpayers and so called tax professionals do not understand the factors that are involved for the IRS to settle tax debt.
There are many nonprofessionals and companies who have no idea what they’re doing filing offers in compromise and charging large sums of money and promising taxpayers they can get their tax debt cases settled.
However, it appears IRS is clamping down to make sure taxpayers are truly qualified before their offer in compromise will be accepted.
I urge everyone to speak to somebody that has a lot of IRS experience and that are experts in this matter before they pay money to a tax professional.
When offers are not accepted it is because of a couple reasons.
1. Taxpayers must be current in filing and with estimated or withholding taxes in the year that they file the offer, and,
2.The documentation they are sending and with the offer in compromise is not consistent with the financial statement.
Most professionals and taxpayers do not know how to document the financial statement and with that the Internal Revenue Service. If it is not documented IRS will immediately reject the offer in compromise.
It is very important for the taxpayer to understand that their financial statement which is the key source for IRS to rejecting or accepting the offer.
If you have any questions about an offer in compromise you can call us today.
Fact :You should be interested to know that the average settlement last year was $17,000.
Why is IRS Accepting Less Offers in Compromise, Former IRS Agent, Call me to learn more.
