If you are processing an Offer in Compromise based under Effective Tax Administration or ETA, it is best to hire a professional tax company like Fresh Start Tax. 13 ETA Offers in Compromise were accepted last year. It is the opinion of Fresh Start Tax that hundreds more could be accepted but there is no history on ETA’s therefore people shy away from the filing of these Offers in Compromise.

ETA offers are processed just like any other offer. Once realized collection potential is assessed IRS makes a decision on the offer. With so many special circumstances that exist such as age, medical needs, loss of retirement, the taxpayers should be aware ETA Offers are there for you. Many times the key issue of the ETA Offer is the fact that the taxpayer has sufficient equity in a piece of property to pay the tax . Taxpayers shy away from the ETA offer because the equity could pay the tax in full. Here is how the IRS works the case.

The first procedure is an additional review of real property valuations. In some cases, the equity taxpayers have in real property can be a barrier to an OIC being accepted. With the uncertainty in the housing market, the IRS recognizes that the real-estate valuations used to determine ability to pay may vary. Therefore, in cases where the accuracy of a real-estate valuation is in question, the case will be forwarded to the Non-Economic Hardship – Effective Tax Administration, or NEH-ETA, group in Austin, Texas, for a second look at the value of the property. The NEH-ETA group will investigate the property value and continue negotiation with the taxpayer to attempt to achieve an agreeable offer, if appropriate. The process is an internal process; taxpayers do not elect to use it.

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