Offer in Compromise – How to Settle with the IRS a Tax Bill 1-866-700-1040
The Internal Revenue Service receives 58,000 offers in compromise last year alone.
They settle approximately 25% of their cases for an average of $.14 on a dollar. The average time that they are an offer in compromise status is approximately 6 to 9 months depending on the complexity and the agent who is working your case.
The offer compromise is more complex than many taxpayers think. The IRS spends anywhere from 10 to 30 hours processing in accepted offer in compromise.
The offer in compromise is not a simple process or program.
You have to work hundreds of offers in compromise to be a true tax expert in this matter. Being a former IRS agent I have witnessed hundreds of offers being filed by taxpayers and professionals who do not have a clue what it takes to get your settlement approved. It is critical to hire a true tax expert in this matter because you will not only save a lot of money you’ll probably settle for a lot cheaper.
Being a former IRS agent and teaching instructor I am always asked ” how can I settle my IRS tax debt for cheap?”
After working 10 years for the Internal Revenue Service and being an offer in compromise specialist the only way that you can settle your tax debt for cheap is to file for IRS tax settlement called the offer in compromise.You can find those forms on our website.
The offer in compromise has changed throughout the years and there is no better time to try to settle with the Internal Revenue Service than now and that is all because of the new fresh start program with a fresh start initiative offered by the Internal Revenue Service.
It should also be noted that most of the offers that are accepted by the Internal Revenue Service are sent in by professional tax firm .
To have your best chance of an offer in compromise being accepted it is needless to say that you should have a former IRS agent and manager with work to system both file your offer in compromise.
The pre-qualifier tool for Offers in Compromise
Before you file an offer in compromise you should use the pre-qualifier tool that you will find on our website. You should not pay any tax firm any money for offering compromise unless you’re a true candidate.
With the IRS pre-qualifier tool you can find out if you are an eligible candidate to file an offer in compromise. The form is simple and will not only tell you whether you are a qualified candidate it will also let you know how much of an offer you must make to the IRS to get your settlement approved.
Contact us today for free initial consultation and you can speak directly to either an IRS tax attorney, tax lawyer, certified public accountant or former IRS agent or teaching instructor.
What is an Offer in Compromise
The IRS 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.
The Internal Revenue Service will consider your unique set of facts and circumstances. They will check things like your:
a. Ability to pay;
b. Income;
c. Expenses; and
d. Asset equity.
IRS will approve an offer in compromise when the amount offered represents the most the the IRS can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Submitting your offer in compromise
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). You can find this form on our website.
Your completed offer package must include the following:
1. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
2. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
3.$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option that fits you best for your offer in compromise
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. IRS will release all federal tax liens that are filed upon completion in payment of your offer in compromise.
Low Income Certification guidelines
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.
Understand the offer in compromise process
While your offer is being evaluated be aware of the following:
- 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.
Before you file for a offer in compromise to settle your IRS tax bill contact true tax experts. Call us today for free initial consultation and hear the truth about the offer in compromise program.
We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service. We are A+ rated by the Better Business Bureau.
Offer in Compromise – How to Settle a IRS a Tax Bill – Affordable Professionals
