Offer in Compromise - A Tax settlement Offer Program From The IRS

Here are all the facts you will need to understand the Offer in Compromise program and how this program is operated. Approximately 52,000 offer-in-Compromises are filed each year and out of this number 12,000 are accepted at a rate of about 22%.

Usually tax specialists have to be trained to understand and work with an OIC. If they are as expert then they will understand how to scrutinize an Offer In Compromise. I bite my tongue in saying this but it is my firm belief that the Agents working these cases look first to reject rather than to accept an OIC. Why, you say, well because it is much easier to write a rejection letter than it is to write an acceptance letter. Therefore, the agents look for reasons they can use to reject the OIC. An OIC rejection closes out the cases that the agent has and makes them look much more efficient in managing case work.

The Key To Having your OIC accepted is listed below:

1. Fully document you case and get every piece of paper you can. Then verify every number you put on form 433A, the IRS financial statement.

2. Make sure the case makes sense and if you believe that agent will have questions, send in an additional statement to clarify any questions that you may have that will arise.

3. Make sure the case makes sense and that you have answered all the questions that an Agent might have about the questions you have.

4. The IRS will look into the history of the taxpayer and income levels for the last five years and if there have been major fluctuations in your income level you will have to document these fluctuations in writing.

5. Many offers for Offer In Compromise are rejected just because they are not attached or the OIC was not signed and to avoid rejection you should have a tax professional review the OIC before submitting.

I have been in this business for so many years that I understand that you would be a fool not to have a professional for a tax representative. In order to do so one must have a tax firm that specializes in the best chances in having your OIC accepted.

By speaking with a number of former tax agents I have found out the best programs and tax policies available. It is iportant to work with a skilled tax lawyer, only an attorney will know which program will work for your situation.

About the Author

IRS Levy Attorney Jim Gilland of Gilland Law Firm P.C. received his Juris Doctorate degree Drake Law School in 1995. He earned his Bachelor of Science and Master of Science degree from Brigham Young University in 1977 and 1978 respectively. He has been practicing law since 1996 specializing in Taxation and helping taxpayers in the Utah and Salt Lake City areas get legal help to solve IRS tax problems.

Author (getmejustice). Submitted on Fri, 30 Sep 2011 Time: 3:08 PM

Rating: Not yet rated

Comments

No comments posted.