I’m a former IRS revenue officer and teaching instructor with the Internal Revenue Service. As a former IRS agent revenue officer and teaching instructor I have worked hundreds of offers in compromise, I know the system!

IRS accepts about 40% of all offers in compromise. Last year 78,000 taxpayers filed offers in compromise and settle for a total of $6500. Right now there’s a nine-month backup on working the offer in compromise by IRS because the pure volume of cases they have and by the lack of manpower.

Understand the system

I understand the system and the process and what it takes to get an offer in compromise accepted.

There is much myth about the offer in compromise.

Everyone believes that they can file for an offer in compromise and settle their tax debt for pennies on the dollar. If in fact that was the case, everybody would file their tax returns owe money and want settle their tax debt.

The IRS offices would be flooded with lines of people wanting to compromise their debt through the offer in compromise.

This is simply not true.

You must be a qualified and suitable candidate for the offer in compromise program with the Internal Revenue Service.

Before any person contemplates the filing of an offer in compromise, spending any money, waste their time or get their hopes up they should fill out the IRS pre-qualifier tool which will let them know ahead of time whether they are qualified for the program.

Call us today for a free initial tax consultation and we can walk you through the process of the offer in compromise to settle your tax that if you are a true qualified candidate for the debt settlement program called the offer in compromise.

Do not be fooled by companies promising they can settle your tax debt for pennies on a dollar. While it is possible I want all taxpayers to make sure they are qualified candidates before submitting any money to a tax firm.

The 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 considers your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.

IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.

Submission

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:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.

Select a payment option

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. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

• Periodic Payment:

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. See your application package for details.

Understand the process

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.

Contact us for a free initial evaluation of an offer in compromise. We are true IRS specialist to resolving IRS tax problems.

We are A+ rated by the Better Business Bureau.

Offer in Compromise – Former IRS Offer in Compromise Revenue Officer, OIC Specialist