Filing an Offer in Compromise can be very overwhelming for many taxpayers. The legal language, the supporting documents, are you giving too much information? However, with the help of a reputable tax resolution company such as 911 Tax Relief, the process becomes much more manageable and increases the chances of your offer being approved. Our track record of successfully resolving thousands of significant tax matters speaks for itself. Let us take a deep dive into your tax problem and present offers like the OIC.
An Offer In Compromise is a tax settlement, where the government takes less than what is owed on the debt as satisfaction for the entire debt. With the IRS and many states, sometimes these can be settled for a fraction of a penny of what is owed. Not everyone qualifies, but this is the main forgiveness program you will hear on the radio and on TV from various tax relief companies. Many firms charge a high fee then you end up in an IRS installment agreement. If one can be had, 911 Tax Relief will get you the best possible legal result. If you cannot get a settlement, we will tell you why.
It’s important to submit an Offer In Compromise before your case goes to collections with the IRS, we can stop the collection action from ever occurring and keep your assets protected. If your bank account or paycheck is already in collection, 911 Tax Relief will contact the collections department for you prior to submission. Many tax relief firms just submit the offer without contracting collections first. This can unfortunately lead to you being garnished while the settlement is pending, as it’s up the IRS Offer In Compromise department to determine whether to release existing garnishments. If you are not sure if your case is in the collections, we can do a Federal Investigation for each year for you.
With the IRS there are two types of Offers In Compromise: Doubt as to Collectability and Doubt as to Liability. Doubt as to Collectability represents the vast majority of Offers that are accepted by the IRS. Doubt as to Liability Offers are rarely accepted.
To be eligible for this type of IRS settlement, the following conditions generally need to be met:
– 80% of the value of your assets should not exceed the total amount of tax owed.
– By the end of the month, your remaining income should not significantly exceed your expenses.
– The tax debt should not have been incurred by cashing out a retirement account without paying the taxes on it.
– You should not have received other types of capital gains without paying taxes on them.
These are the fundamental guidelines, although there are exceptions and special circumstances. “Dissipated assets” (points 3 and 4) are sometimes eligible for settlement if the debt is over 3 years old, but this is determined on a case-by-case basis. Some of these rules regarding assets can also be flexible. We have had Offers accepted in cases where the client’s home was fully paid off, although this may require an appeal and an explanation of why the IRS should consider the settlement.
At 911 Tax Relief Law, our primary focus is on delivering exceptional service to our clients and providing effective solutions for their unpaid or disputed IRS or State tax liabilities.
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