CAN THE ASSESSED TAX BE REDUCED?

In certain circumstances, the IRS may settle a tax debt or dispute for less than the demanded amount.

No one benefits from you being in debt to the IRS. The letters from the IRS stress you out, which causes difficulties with your family. You're having strong anti-government feelings. You've put many of your life goals on hold while the IRS is scrutinizing your financial life. You're backed into a corner, so your best option may be a reasonable compromise.

The IRS is comprised of people who want your debt to be settled. IRS employees want your file off their desk (unless you're purposely trying to cheat the government or are involved in serious illegal activity). Part of their evaluation is actually on the number of files closed fairly. They want to spend their time going after the people who owe much more money than you or are involved in illegal activity. They're often open to a reasonable compromise.

Based on your financial situation, the IRS may accept less than you owe when the assessed amount is debatable. Your paying the amount owed is unlikely because it creates a financial hardship. It's a compromise for everyone, thus the name "Offer in Compromise."

WHAT IS AN OFFER IN COMPROMISE?

An Offer in Compromise is tax relief based on your assets, expenses, and ability to pay. That is, your final tax bill may be a negotiated agreement with the IRS to settle a tax debt for less the amount owed. An Offer in Compromise is a great tool to keep payment of taxes due from devastating you financially. Instead of a financial disaster, you may start fresh with a clean slate with payment of only an amount you can afford.

If accepted, you'll pay an amount that you can afford based on a complicated income, expense, and asset analysis for up to five years. Your tax debt is final once you complete your series of payments.

WHAT ARE THE BENEFITS OF AN OFFER IN COMPROMISE?

For the IRS, avoid costly litigation and collection expenses. They get paid less than the full amount that they claim you owe, but they get paid sooner without the time and expenses. They also close another file so they can spend more time going after a bigger fish.

For you, you still have to pay, but you get to pay less. Depending on your situation, that could be a lot less. Also, the huge burden is lifted off your shoulders so that you can focus on achieving your family and your next life goal with fewer sleepless nights.

An accepted Offer in Compromise is a win and a loss for both you and the IRS. Both are partially satisfied with the outcome but not overly satisfied. It's truly a compromise for everyone.

Call us if you would like to discuss your situation and possibly obtain relief through an Offer in Compromise. For many taxpayers, we have the knowledge and experience helping people like you successfully walk away with paying less than the IRS demands. We can work with you to evaluate your financial situation to maximize your opportunity for a successful Offer in Compromise.

An Offer in Compromise is a great opportunity for tax relief and allows many people to pay far less than the full tax debt owed. It's essential that your income, expense, and asset analysis submitted with your Offer in Compromise is detailed and accurate because errors, omissions, false statements, and half-truths, may cause your Offer to be rejected. The ramification of a rejection is that it gives the IRS one additional year to collect the taxes owed. Furthermore, your Offer is a roadmap to where and how your assets are being held.

The IRS has tax professionals working for them, so never underestimate their knowledge. They know tax collection, and they are quick to spot lies. If you face the IRS without a legal professional representing you, the IRS is more likely to find opportunities to bring more actions against you, resulting in you finding yourself in an even more precarious situation.

Don't be naive. The IRS is excellent at collecting money and sending people to jail. Don't make the mistake of fighting them alone. They're well-trained and experienced professional opportunists. Their only two jobs are to collect money and send people to jail. They follow the same rules and regulations when interviewing people like you their whole career.

We understand the IRS's processes and procedures, and we will fight to maximize your opportunities for success in reaching a reasonable compromise. This process can be confusing and frustrating. We understand. Every situation is different, but we can fight to get the best plan for you based on your situation. That relief may be an Offer in Compromise. Call us today so we can discuss your situation.