Offer In Compromise

by Louis Meeks on January 3, 2015 in Blog

OFFER IN COMPROMISE

Victory Tax Solutions, LLC

“America’s Trusted Tax Team”

An offer in compromise is a very advantageous hardship program that the IRS offers to certain taxpayers.  The taxpayer offers a fraction of what they owe to the IRS, typically 10-50% of the liability.

When individuals attempt an Offer In Compromise by themselves, the success rate averages 20%.

At Victory Tax Solutions, when our clients follow our recommendations and we prepare the offer, our clients’ acceptance rate exceeds 90%!

Our success rate is largely based on our screening process.  Any number of tax resolution companies will tell you they will “submit” an offer.  Whether that offer is likely to be accepted is a totally different situation.  The IRS has standards that must be met in order for the taxpayer to be considered a viable candidate.  Our tax attorneys are well versed and very experienced on the nuances the IRS uses to determine viability of an offer.  Nothing is more frustrating than making an offer, waiting six to twelve months, then having it rejected.

The IRS time frame for acceptance or rejection is approximately 6-12 months.  The good news is… While the offer is being considered, all collection activity is put on pause. The even better news is…. No wage garnishments or tax levies.

The following are a few of the criteria and success factors the IRS uses in analyzing Offer in Compromise applications:

• One determining factor for success is tax compliance.  This means the taxpayer must be current on their tax filings, even if they owe back taxes.  The older the tax liability, the more likely it is to be considered.
• The second factor is age of the tax payer.  The IRS wants to see the likelihood of the entire debt being paid within a certain amount of time. So in reality, the older you are, the better.
• The third factor is related to the financial situation of the taxpayer.  This includes assets, liabilities, income and expenses.  A full disclosure of your finances must be included.  The IRS does a search for your bank accounts and assets, so being honest is crucial.  They will find out if you are trying to hide money and assets.
• The fourth factor is education, training, and occupation.
• Lastly, the IRS is extremely particular about how the offer is presented.  It must be very well organized and in a certain format.

The Victory Tax Solutions team is led by Senior Tax Attorneys, CPA’s and paralegals.  We have a great combination of law school education, knowledge of the tax laws, experience working with the IRS and always working to get the best possible outcome for our clients.

If you are interested in learning more about Offer in Compromise or any other IRS or state resolution, please call Victory Tax Solutions today for a free consultation with one of our Senior Account Executives.  We would love to help you.  Our toll free number is 877-772-0123.

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Offer In Compromise

by Louis Meeks on November 11, 2014 in Blog

An Offer In Compromise is a very advantageous hardship program that the IRS offers to certain taxpayers.  It allows you to settle your tax debt for a fraction of the full amount owe to the IRS.

Our success rate is largely based on our screening process.  Any number of tax resolution companies will tell you they will “submit” an offer.  Whether that offer is likely to be accepted is a totally different situation.  The IRS has standards that must be met in order for the taxpayer to be considered a good candidate.  We use the same formula the IRS uses in order to check the viability of an offer.  Nothing is more frustrating than making an offer and then having it rejected.

Here are a few important things to consider in making a decision to apply for an Offer In Compromise. Some of them are:

1. While the offer is being considered all collection activity is put on pause.
2. he time frame for a decisiorom the IRS is typically 6-12 months.
3. here is a non-refundable $186 application fee.
4. Unless you qualify for the Low Income Certification guidelines, you will need to submit an additional payment with your application.
5. You must be “compliant” with your tax returns.  That essentially means you must have filed all of your tax returns.

There are many factors involved in determining whether the offer is accepted.  Some examples include age, income, assets, health, occupation, etc.  he fact that you will have to wait up to 12 months to find out if your offer has been accepted can be very frustrating.  nd, to make matters worse, many Americans have hired dis-honest firms to do this very important work.  Many firms will mislead the client into thinking their offer will be accepted.  Then, 6-12 months later, the consumer is informed of the rejection.  That may leave the taxpayer in worse shape with the IRS than before.

At Victory Tax Solutions, we have a very high Offer in Compromis acceptance rate.  We absolutely attribute that to our xcellent team of tax attorneys who have the experience you can trust.  When you combine that experience, with our money back guarantee, our clients sleep very well at night!

Our team of very helpful associates is here to answer all of your questions regarding the Offer In Compromise. Please call 877-772-0123.

©2014 victorytaxsolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.

What is an Offer In Compromise?

by Victory Tax Solutions on March 8, 2012 in Blog

If you’re in trouble with the IRS, it’s possible you’ve heard someone mention that you should try to get an “Offer In Compromise.”

But, what is it?

An Offer In Compromise is a settlement offered by the IRS, when they believe it is unreasonable that the taxpayer will be able to pay off all of the debt they owe.  The IRS and the taxpayer agree upon an amount, which allows the taxpayer to pay off their debt in a manageable way, and giving them an opportunity for a fresh, debt-free start!

I could use one of those, how do I get one?

You must be eligible.  Before you will be given an Offer In Compromise, the IRS has to believe that you are unable to pay the total amount you owe.  This means that before you make an offer you have to first submit all of your missing paperwork including: missing tax returns, this year’s tax returns (or estimated tax returns), and, if you’re a small business owner, file your federal deposits.  After you’ve completed these first steps, you are eligible to apply.  *Note: If you are in the process of filing for bankruptcy, you are NOT eligible to settle an Offer In Compromise.

Then, you can fill out an application.  As an individual, you submit IRS forms 433A and 656.  (If you’re a small business, you use forms 433B and 656.)  Along with your forms, you will have to provide extensive documentation about your assets, which the IRS will use to determine what they believe you are capable of paying within a 24-month time period.  You will also need to submit a $150 application fee and a first payment.  (Note: if you are below the poverty threshold, you can complete an application fee waiver.)  Based on all of the personal data you compile, you make an offer—kind of like making an offer to buy a home—the IRS will decide whether to accept your offer.

Do I need a tax resolution professional to help me with this?  Technically, no.  But, the process of filing for an Offer In Compromise can be overwhelming and a tax specialist who has extensive experience knows their way through the system and can help you resolve your issue with fewer kinks.  A tax resolution specialist also knows how to make an offer acceptable to the IRS and can help speed up the process.

©2014 victorytaxsolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.