Arranging Offers in Compromise

Even if it seems that all hope is lost, there are ways of negotiating with the IRS to clear any amounts of “back taxes” which could have become due and if an agreement can be reached, not only can it see any case stop, it could also see a slice of the interest charged being taken off if “immediate payment” is made.

You will most likely have heard the saying “you can’t get blood from a stone” so even if you can’t make the payment in full, suggesting a reasonable amount each week/month, which goes towards the repayment, is certainly a start to clearing any bad debt and providing you with a fresh start which you most likely need. The main benefit of the Offers in Compromise system is that should the IRS agree to such an offer of payment (as long as you adhere to this) they cannot by law start seizing your assets or deducting sums directly from your wages.

Is the Offer in Compromise system useful?

In line with this, the IRS are trying to enhance their image of being a more “user friendly” organization which explains the existence of the Offers in Compromise system but even today it is considered to be difficult and not actually a help to any parties involved.

It has been recommended that changes need to be made with the system because as with what was dubbed the “easy to understand” 1040 form it is becoming common for most Offers in Compromise forms being returned since those completing them simply don’t have the knowledge of IRS procedures and requirements to get them completed and filed correctly. Doing it right first time is a vital step in this type of scenario so if there is anything you don’t understand then it is vital to ask, we can help with trying to arrange the Offer in Compromise on your behalf.

The Client Data Form

Should contacting the IRS about completing your Offers in Compromise application not prove to be of any help at all then contact us today for aid with completing and filing your application correctly. Upon receipt of your request, we will review your situation as a whole and provide you with a clear idea of what can be offered to the IRS that is less likely to be rejected; this is what you want to avoid, a bad situation becoming worse.

Once we have undertaken the review of your case, we will be able provide you with a cost to secure the services of our representation in order to submit the Offers in Compromise directly to the IRS. If you do decide to go ahead then we will start immediately to make a clear path for a better future.

Completing an Offer in Compromise

If you have decided to use our services in order to produce a significant Offer in Compromise to submit to the IRS then once all of the necessary information has been prepared and organized accordingly with any other relevant documents that make up a Collection Information Statement it is then sent to the relevant IRS office for processing.

You need to be aware that the process can be very slow but should your request be sent to either of the main center located in Brookhaven, New York or Memphis, Tennessee rather than your local IRS center, the process could be slightly quicker.

On occasions further information may be required and it is vital to respond to such requests because all claims (totaling approximately 25%) are rejected as no follow up information is provided which may have been required to finalize a claim. This could be anything from bank statements, tax returns or even pay slips from any current employment.

Please be aware that any Offer in Compromise is pending, the IRS are not allowed to take tax or initiate further action during this time due to the duration it can take to process your request. This law will keep you free from further tax interest or goods being seized for up to a year but a Notice of Federal Tax Lien could still be filed during this time despite a pending proposal offer.

We handle all correspondence so there is no need to worry, we arrange for all information to be provided in order to make the transaction go as smoothly as possible.

Securing and Collating Essential Information

At this point in time you may be unsure of the process to take when it comes to securing and providing the necessary documents to help build up an Offer in Compromise for submitting to the IRS.

In the first stages we would produce a Power of Attorney form that will be issued directly to the IRS and by doing this; we will work to secure all accounts linked to you in order to verify that tax returns and payments have been posted in accordance with the rules and regulations laid down.

After this, we would file a Freedom of Information Act also the IRS so we can have full access to their files on the case in hand so as to get an idea of exactly what is occurring and the situation which has led to an investigation by the IRS in the first place.

This is just the beginning; you need to prepare yourself for a lot of liaising between both parties to help us establish all financial circumstances involved in the case. We will review and put together the Offer in Compromise, you will have the opportunity to see the exact file being sent beforehand should there be anything missing.

We know that submitting an Offer in Compromise is vital and will therefore present all of the information provided to us as best as we can while also being able to calculate an adequate repayment sum (whether all up front or over a specified period of time) that will keep everyone happy and most importantly, debt free.

The one tip we can give you when it comes to completing and providing these documents is to be realistic and honest with your incomings and outgoings because we all need money to live on, any “spare” cash will be considered as exhaustible income to clear any outstanding debts.

Arranging the Payment of Compromise Amounts

If you are waiting for the outcome of an Offer in Compromise following it being filed with the relevant IRS office then for your information there is no need to pay any money to them until it has been processed appropriately and hopefully agreed. A common occurrence is that any outstanding amount should be paid 90 days after the said offer has been accepted.

Should paying the full amount not be possible then you may be able to pay in monthly installments over a two year period which wouldn’t see any interest payments being added onto the amount due. When the big day comes and it has been paid off, then any previous tax liens on your credit rating should be wiped and will technically “unfreeze” all of the assets that may have been previously held by the IRS.