Offers in Compromise

Submitting an Offer in Compromise to the IRS can save you thousands on your tax bill - If You Qualify.

If you don't qualify, it can cost you.  Contact us to see if you qualify.

In order for an Offer in Compromise to be considered, the IRS requires your complete financial statements to be submitted for you and any businesses you own.  All income, expenses, and assets must be disclosed.  Remember:  Once an offer is submitted, it goes directly to the IRS collections branch for review.  If you qualify for a settlement, this is no big deal, because your tax debt will be reduced.  However, if you don't qualify and all of your personal financial information has been given to the IRS, the IRS can, and will, use that information against you for collection purposes.  Say you make more money than the IRS thinks you need to survive, or you have a retirement account that you don't want to touch - too bad.  The IRS collections branch can take it all away and they are only required to leave you with the bare minimums to survive.  

The point is this - our clients never submit an Offer in Compromise unless we already know for certain that they qualify.  To find out if they qualify we must compare all of the financial information they will be giving to the IRS with the formulas that the IRS has devised.  If the information fits within their standards, Hooray - a settlement.  If not, there are other options for getting out of debt.  

The easiest way to find out if you qualify is to contact us.  I am an enrolled agent, a federally licensed tax professional, who is qualified to represent taxpayers before the IRS in all 50 states. I also have 6 years of previous experience working for the IRS. I can generally let you know if you qualify in a matter of minutes.  Our initial interview is free. When you contact us we will send you a form to complete and let you know what information you will need to gather. If you need for us to order and analyze your IRS transcripts there is a fee of $125. If you want to try and figure out how much to offer on your own, you can follow this basic formula:

THE BASIC OFFER IN COMPROMISE FORMULA:  Offer Amount = AV + FI

To figure out AV, just add up the Quick sale value of all of your assets.  FI is the total amount of your "allowable expenses" (according to the IRS Collection Financial Standards ) subtracted from your monthly income and then multiplied by either 48 or 60 months. You will need to be able to provide proof of income, and living expenses for the most recent 3 month period. You will also need to substantiate your debts, available credit, investments, retirement accounts, bank accounts, and any assets you own.

Offers can be settled by paying one lump sum within 90 days of IRS acceptance (48 mo. formula), or by agreeing to pay in equal installments over a 24 month period with no additional interest and penalties assessed (60 mo. formula).  

If you also have substantial State tax debts, we can file Federal and State offers together and allocate the amount you qualify to pay between them based on the amounts owed.