I am a Former IRS Offer in Compromise Specialist, Former IRS Agent, I know all the inside secrets. I accepted Offers for the IRS. I was also a teaching instructor with the IRS.
The Internal Revenue Service does not take accepting offers and compromise lightly.
Only certain revenue officers become offer specialists and they receive special training.
The person working the offer in compromise is a revenue officer who is very experienced in the collection of tax and the examination of financial statements. IRS has special classes set up for those wanting to become offer in compromise specialist.
I am a former IRS agent and revenue officer and taught the offer in compromise program to IRS agents one become experts in this matter.
IRS spends a significant amount of time on offers in compromise because all offers are public record. IRS values the consistencies in the acceptance of offers in compromise. IRS wants all taxpayers treated equally, without favoritism with the same set of standards for all.
When a revenue officer gets the case to work an offer in compromise that agent scans the entire case file to make sure the offer in compromise makes sense.
Therefore they carefully look at income on tax returns, bank statements, cost of living, and the financial statement that you are turning in for IRS to settlement.
You would be surprised as a former reviewing revenue officer some of the submissions that are turned into IRS. I encourage the public if they are sending in their own offer in compromise, to make sure if there is anything out of order or unusual that they put a clarifying statement as an attachment.
IRS does an extensive asset search to verify you are telling the truth on the financial statement. The higher dollar amount the more due diligence that IRS will conduct to make sure your offer can be accepted.
IRS may check on the following:
IRS will check all the documents submitted by the taxpayer and look for flags, they may look at things like:
1. all life insurance policies,
2. motor vehicle records and applications,
3. financial statements turned into lenders,
4. IRS can check credit card applications,
5. equity and all assets,
6. any stocks or securities are closely held corporations and LLCs,
7. life insurance, pension or profit sharing,
8. furniture fixtures and personal effects,
9. motor vehicles, airplanes, boats, real estate interest,
10. transfers of properties,
11. accounts and notes receivable,
12. income producing assets,
13. inventory, machinery, equipment, tools of trade,
14. valuations of businesses,
15. future income potential,
16. collateral agreement,
17. find out whether or not people are living together and have shared expenses,
18 .limited liability issues,
19. Run Full Google Searches,
20. Get a copy of your credit reports,
21. Check the Accuriant Search Engines,
22. Pull licenses searches,
23. May also use Lexis Nexis for asset searches,
24. Check if you are a beneficiary,
25. and check if you ever transfer any property, assets, or anything beyond the reach of the federal government.
26. IRS checks for pending law suits.
The IRS agent can check on the aforementioned and any other thing that they feel does not make sense or there is a flag raised on the statement.
Have questions or concerns?
Call us for a free initial tax consultation and we will go over your offer in compromise and find out if you can settle your tax debt through the offer in compromise program.
You will be speaking the true IRS tax experts and former employees who know exactly what the formulas, settlement methodologies, so you can find out what is the lowest dollar possible IRS will accept.
