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Dec 18, 2013
3 min read
Successful Texas Offer in Compromise | Flat Fee Tax Service | San Diego
Updated: Apr 13
Flat Fee Tax Service announces another successful Offer in Compromise settlement. Our clients, Michael and Stacey C. of Arlington, Texas called our tax professionals for a consultation. They owed the IRS a back tax debt of $137,000. Michael and Stacey needed help fast.
Flat Fee Tax Service is a Better Business Bureau Accredited and has always mainted an A-Plus rating. We are located in San Diego, California and Clearwater, Florida. Our clients are located throughout the United States because all you need is a computer, a smart phone, a fax or just a plain old phone, our team can provide tax relief work.. In fact, we have clients who are living in other countries and they have problems with the IRS.
Although the IRS has the authority to accept an Offer in Compromise as a full settlement of past tax debts, the great majority of Offer in Compromise settlements (OIC) presented are rejected by IRS Revenue Officers.
The reasons why the IRS will accept Offers in Compromise are explained in Policy Statement P-5-100:
“The Service will accept an Offer In Compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential. An Offer in Compromise is a legitimate alternative to declaring a case as currently not collectible or to a protracted installment agreement. The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government.”
Among other policy statements by the IRS regarding an Offer in Compromise (#OfferinCompromise), Flat Fee Tax Service adheres to the IRS policy when deciding if negotiating an IRS Fresh Start settlement through an Offer in Compromise is a viable tax relief option for our clients. It is essential that a struggling taxpayer understand that an Offer in Compromise must include all of a taxpayer’s back tax liabilities. For income taxes, any unfiled tax returns must be prepared and filed so that the full liability is known. If there are question marks in a taxpayer’s compliance history, negotiating an Offer in Compromise is most likely the wrong tax resolution strategy to take.
The Internal Revenue Manual does permit the acceptance of an Offer in Compromise with a deferred payment period of up to two years:
“(3) A deferred payment offer is one where any part of the amount offered is to be paid at any date(s) more than 90 days after acceptance of the settlement offer. As a general rule, deferred payment should not be extended beyond two years. . . .
(4) The terms of a deferred payment offer should be precisely stated so there can be no doubt as to the taxpayer’s intent if the offer in compromise is accepted.”
In general, the IRS tax relief team at Flat Fee Tax Service has learned there is a difference between what is written in the Internal Revenue Manuel and how the IRS Revenue Officers actually conduct delinquent tax debt cases.
Like with any institution, including the IRS, there is a gap between theory and practice. This gap is why you need a tax professional’s guidance when negotiating an Offer in Compromise.
It is our experience at Flat Fee Tax Service and our history of successful tax resolution outcomes is why working with our IRS tax relief team makes so much sense. If you want help negotiating an Offer in Compromise (#IRSsettlement), be sure to contact us at Flat Fee Tax Service for honest, dependable and thorough tax relief work.