An offer in compromise allows individuals to settle their tax debt for less than the full amount owed to the IRS. Our clients have been able to reduce their tax liability thousands to hundreds of thousands through the offer in compromise program. It's not for everyone, but if you are serious about getting out from underneath tax debt, we certainly can help you.
Sound too good to be true? There's actually a rational and systematic process on why this great program works for the IRS and the majority of individuals struggling to pay their tax debt. We first measure your ability to pay, income, expenses and asset equity. After carefully formulating an amount that is fair given your unique circumstance we submit an offer to the IRS. When the IRS approves the offer, the rest is forgiven. The IRS is only interested in the most they can expect to collect in a reasonable time. Hence, why they write off millions each year in tax debt. Neither you nor the IRS wants you to be financially burdened by drawn-out tax debt that's impossible to payoff.
The offer in Compromise gets even better. You still have options in how to pay your approved amount. Many individuals are able to reduce their debt to an amount they can pay in full. What a great feeling that would be huh? If not, installment payments can be easily arranged.
There are 3 strategies to choose from with an Offer in Compromise.
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DOUBT AS TO COLLECTABILITY
I know what you are thinking, “ I will never be able to pay off this enormous debt”. You may be worried you will have to give up your current lifestyle in order to satisfy the IRS. Doubt as to collectability is our favorite way to help our clients because it is so effective. Your nice home, health insurance, life insurance and medical expenses are all items that help reduce the offer that is accepted by the IRS. We start by asking clients to fill out the Offer in Compromise Form 656. From there, we perform a thorough financial analysis to see if you are eligible.
DOUBT TO LIABILITY
If you believe that the taxes you owe are not correct, then an Offer in Compromise Doubt to Liability may be right for you. It could be that the IRS or your accountant made a mistake. For example, it could be the result of a past audit that was not correctly represented or an inaccurate tax return. Preparing a supported Doubt as to Liability Offer in Compromise is the step you would take to correct the error and reduce the taxes owed.
SPECIAL CIRCUMSTANCE (EFFECTIVE TAX ADMINISTRATION)
It may be that you are liable for your tax debt and you also have the money to pay, so you feel as though there is no way of getting out of paying the IRS. This isn't necessarily true. If you have a special circumstance, you may still qualify for an Offer in Compromise if it would create an economic hardship to pay the full debt owed to the IRS. Say if you are on a fixed income, have a disabled child or if your retired and the liability would drain your retirement account.
Despite how the debt came to be, Atkins and Associates have had enormous success in representing clients since our inception in 1999.