As a former IRS agent and teaching instructor with the Internal Revenue Service I used to teach the offer in compromise program to agents that were qualified to both work to process and accept offers in compromise.
Therefore, I know the system inside and out and when you call our office we will review your case with you and let you know before hand whether we will process your offer in compromise and take the case on.
We will never take any offer in compromise on that we do not believe will settle with the IRS.
One of the reasons the offer in compromise is the best way to settle your back tax that is simple it reduces your debt for pennies on the dollar and it removes the federal tax lien from your credit records.
The offer in compromise is a much more complicated process than taxpayers can possibly imagine. Much time is put in to the acceptance of an offer in compromise and IRS goes through great lengths of due diligence before it accepts an offer in compromise.
Below you will find out different aspects of the offer in compromise program you may not have been aware of so take heed.
1. All offers in compromise that are accepted are open to public inspection at rate eight regional IRS offices across the United States.
Believe it or not, only one person reviewed accepted offers in compromise at one regional site and to date this year, no one has reviewed any accepted offers in compromise.
2. It is much easier for an IRS agent to reject an offer in compromise into accepting why?, just sheer laziness, matter of fact an agent will look to reject an offer in compromise first as to accept it. It takes a lot more work to accept an offer in compromise because all the managerial reviews required.
3. An average offer in compromise takes anywhere between 20 to 40 hours to accept because of all the due diligence that is necessary for the program.
4. The offer in compromise group is a specialized group that goes through ask expansive training to understand the different nuances within the offer in compromise program and to make sure it legally can be accepted by the Internal Revenue Service.
5. The offer in compromise is a legal and binding contract between the taxpayer and the United States Department of treasury. it is wise for the taxpayer to become aware of the requirements if your offer is accepted. What I mean by this is that for the next five years you must pay all your taxes on time. Should you miss, your offer in compromise will kick back out to the field.
6. The smaller the dollar amount, the less work and effort is put into the offer in compromise. Large dollar cases require 2 to 3 times the amount of work that a small dollar case takes.
7. Last year, approximately one third of offers in compromise were accepted by the Internal Revenue Service. As a general rule, somewhere between 30 and 35,000 offers are accepted every year. The average settlement dollar is $9500 per offer. That dollar amount is misleading because it is an average and is not really reflective because the OIC is based on a case-by-case basis.
8. The Internal Revenue Service has a number of financial search engines they use to check the offer in compromise for the validity of doing due diligence. They can use the Accuriant search engine, the Google search engine and internal governmental search engines such as LEXIS-NEXIS and other ones used by the Department of Homeland Security the FBI as well as other agencies to do checks.
9. Offers in compromise are accepted per formula. Therefore knowing the formula is the key to getting your offer in compromise accepted by the Internal Revenue Service. If you want to get your offer in compromise accepted you must go to an experienced tax practitioner who has worked at least 100 an offer in compromise to understand the complexity and the nature of the offer in compromise.
It only makes sense to have former IRS agents such as us who know the system inside and out to have the best chance to getting your offer accepted.
10. The base rule for the Internal Revenue Service is that you must give IRS your total liquid value as a base. The Internal Revenue Service generally will never accept anything less than your full liquid value. Also IRS is going to take a close look at your income versus your necessary living expenses ratios.
11. The average offer in compromise takes a minimum of nine months from the time their file to acceptance.
If you like to learn more call us today and we will review with you the offer in compromise program and find out if you’re a qualified candidate to get an offer in compromise accepted.
What You Need to Know About the Offer in Compromise, Former IRS Agent Explains
