Get Offer in Compromise Approved
I am a Former IRS agent and teaching instructor of the offer in compromise program.Firm has over 206 years of combined IRS work experience and over 60 years of direct working experience in the IRS local, district, and regional tax offices.
We are comprised of tax attorneys, certified public accountants, and former IRS and state tax agents.
We been in practice since 1982 in our A+ rated by the Better Business Bureau.
We are the affordable tax experts for offers in compromise.
Being Former IRS agents we understand the complete inner workings of the Internal Revenue Service and how to get an offer in compromise approved. Not only did we work the program and IRS we were instructors that taught the program to other IRS agents.
Offer in Compromise getting easier to be approved
The Internal Revenue Service is making it much easier for taxpayers to get an offer in compromise approved. In the past, IRS made it very difficult to have offers in compromise accepted because the sheer amount of time it would take to get an offer approved. It was much easier to deny the offer compromise that to work the offer in compromise.
Stats for Offers in Compromise
 

• Last year, 58,000 offers in compromise were filed by taxpayers with the Internal Revenue Service.

• IRS accepted 38% of all offers in compromise filed by taxpayers.

• The average settlement was $.14 on a dollar.

• Taxpayers should know that there are 7500 cases sitting in the Internal Revenue Service queue at this time and offers in compromise take anywhere from four months to eight months to work.

 
How to Get Your Offer Approved by the IRS
It is all about knowing the IRS settlement formulas.
To get your offer in compromise approved you must know the systems, the formulas, and be familiar with the national standard test used by Internal Revenue Service to accept offers in compromise.
IRS will look at two main factors in settling your case.
The Internal Revenue Service is concerned about your income and your assets.
Regarding Your Assets
You must give IRS the total liquidity you have in all your assets or your offer in compromise will not improved.
This includes equities in vehicles, IRA, pensions and basically anything that has value. IRS will want you to surrender that equity to them and make them part of the settlement. Since the Internal Revenue Service can seize all those assets they absolutely mandate that that liquidity be part of the offer.
Regarding Your Income
IRS will want to know what the value of your current monthly income. IRS will compare your current income against the national, regional and local standards tests that you can find on our website or on IRS.gov.
Internal Revenue Service will find out if you have any disposable income after subtracted against the national, regional and local standards.
Any money left over monthly is multiplied by 12.( a yearly factor)
IRS will simply add up your total asset liquidity plus the value of your disposable monthly income and that will be the base amount of your offer to the Internal Revenue Service. The Internal Revenue Service will accept no less than that amount.
Other Factors that may come in to play
IRS will also at the full body of the case such as age, education level , medical conditions, prospects for more income. There is a full-page checklist that IRS  requires the agent complete so IRS sees and understands the full body of a taxpayer’s financial life.
The Brand New Fresh Start Tax Program to get your Offer in Compromise Approved
The Internal Revenue Service another expansion of its Fresh Start initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past.
This focuses  IRS on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.
In certain circumstances, the changes include:
1.  Revising the calculation for the taxpayer’s future income,
2.  Allowing taxpayers to repay their student loans,
3.  Allowing taxpayers to pay state and local delinquent taxes,
4.  Expanding the Allowable Living Expense allowance category and amount.
 
What is a Offer in Compromise OIC
The OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential.
Offers in Compromise are always subject to acceptance on legal requirements and always must be approved by District Council of the Internal Revenue Service.
The IRS recognizes that many taxpayers are still struggling to pay their bills so the agency has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.
When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years.
All offers must be fully paid within 24 months of the date the offer is accepted. we have had many clients have their offers in compromise accepted only to failed to meet the terms. If that happens IRS keeps all monies paid to IRS and starts the enforcement action in the cycle all over again.
Other changes to the program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential.
In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Allowable Living Expenses per the National Standards
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay.
The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas.
These standards are used when evaluating installment agreement and offer in compromise requests.
The National Standard miscellaneous allowance has been expanded to include additional items. Taxpayers can use the miscellaneous allowance for expenses such as credit card payments and bank fees and charges.
Guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education.
Payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.
Taxpayers wishing to settle their case with an offer to compromise should do so by the use of a professional tax firm that has filed at least 100 offers in compromises.
Unless you have extensive working knowledge of the Internal Revenue Service the odds of getting an improved offer in compromise are slim.
I’ll suggest taxpayers who want to do this on their own walk through the IRS pre-qualifier tool that they can find on our website.
It is understandable that taxpayers do not want to pay in the neighborhood of $5000 for a professional firm.
If you do this on your own, hazards exist.
However , this pre-qualifier tool at least will give the taxpayers a better understanding of the offer in compromise program.
Contact us today for free initial tax consultation and we can walk you through the process of helping you get in IRS offer in compromise approved.
We have an A+ rating by the Better Business Bureau have been in private practice since 1982.
Also on staff are former IRS appellate agents for those who have had their offers in compromise rejected and need to take it to the next level.
 
Get a Offer in Compromise Approved, Former IRS, Affordable – Atlanta, Jacksonville, Orlando, Tampa