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If you owe monies to the Internal Revenue Service the only way to settle your IRS tax bill is through the use of an offer in compromise.
The offer in compromise has been around for a long time but it was not until the last three years did the Internal Revenue Service take settlements seriously.
When I worked at Internal Revenue Service and was a teaching instructor of the offer in compromise the first thought by Agents were sadly to find a way to reject the offer because of all the work it took to put the case through.
Offers in Compromise take a long hours to work and it is a long time the process because they are open the public inspection for one year and no agent wanted their work open to managerial and public scrutiny.
With the Advent of he IRS fresh start initiative or fresh start program and the very fact that the government needs money the Internal Revenue Service is finally taking seriously the use of the offer in compromise. Many taxpayers are now settling their tax debts.
 

Offer in compromise Facts

• Last year the Internal Revenue Service accepted 38% of all offers in compromise.
• Last year there were 58,000 offers in compromise filed.
• The average settlement was $.14 on a dollar.

 
Before any taxpayer uses the offer in compromise to settle their tax bill they should know that not everybody can settle their tax bill with the Internal Revenue Service.
Every taxpayer needs to know that they can be pre-qualified and pre-screened to find out whether they are a suitable candidate for the offer in compromise to settle their tax bill.
You can find that pre-qualifier tool on our website and find out if you are eligible before you give your money to any professional firm.
 
What is IRS looking for a Settle my Tax Bill ?

The only two things IRS is looking for on the offer in compromise is;
 

• the liquidity value of your assets and
• disposable monthly income.
• Basically those two figures will comprise your settlement of your tax bill.

 
Internal Revenue Service will add up the liquidity value of your assets and find out what your disposal monthly income and add the two together. That is a starting point for your offer in compromise.
The big wow factor for an offer in compromise are the national standard expenses.
The IRS will only accept the national, regional and local standards for all your expenses.
You must make sure you understand the national concept standards before applying for the offer in compromise.
You can find those standards on our website for each area in the United States
Other factors  play into this formula and you should speak directly to a true tax professional before the contemplation of your offer in compromise filing to settle your IRS taxable.

The IRS may accept an OIC based on three grounds.

 
1. Acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
 
3. Acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Call us today for free initial consultation or evaluation to find out whether you are qualified or suitable candidate to file an offer in compromise to settle your tax bill.
 
Use a IRS Offer in Compromise to Settle IRS Tax Bill – Former IRS Settlement Agent