Offer in Compromise San Diego - California IRS Tax Attorney
Updated: Apr 20, 2019
SAN DIEGO OFFER IN COMPROMISE - CALIFORNIA TAX ATTORNEYS
When do I know it’s the right thing to file an Offer in Compromise?
4 top reasons.
1. You are pretty much broke. When you submit an Offer in Compromise, the IRS must be convinced that they will be unable to collect the amount of your tax debt in the time frame they have to do it (10 years).
Every $100 that the IRS determines you can pay them results in $6,000 compromise value (i.e., if you can pay the IRS $200 per month, then the value of your cash flow in a compromise is $12,000).
2. You have minimal equity in assets. If the IRS took your assets, and paid off any loans against those assets, what would be left to be applied to your tax debt? The IRS usually reduces the valuation of cars and real estate by 20% in an Offer in Compromise.
Most of your personal household goods will be considered out of reach by the IRS. Add in the value of retirement plans, less taxes to liquidate. So, what is left?
Note: You can submit an Offer in Compromise if you are not “broke” and if you do have equity in assets; it just increases the value of your IRS settlement.
3. You have considered how long an Offer in Compromise can take. You should count on an Offer in Compromise submission to last 10 to 12 months. If the IRS is unwilling to accept the amount offered, you then have the right to then file an administrative appeal stating your disagreement with the initial findings.
Should you need to appeal a rejected Offer in Compromise, you should figure another six months to a year for the appeal. If you can reach an IRS settlement agreement with appeals, the IRS will allow you to pay the settlement over up to two years. It is not until the final payment is made that your offer is considered complete.
4. You have considered the time frame the IRS has left to collect the tax. The IRS has ten years to collect a tax debt liability. Submitting an Offer in Compromise extends the collection time frame. For example, if a compromise is unsuccessful after a two year investigation, those two years are added back into the time frame the IRS has to collect.
5. While the Offer in Compromise process is taking place, the IRS must leave the taxpayer alone. That means no intimidation. No levies.
Careful consideration should be given to whether it is advantageous to submit an Offer in Compromise if the IRS is running out of time to collect. Be careful that your Offer in Compromise settlement offer sends you forward to a tax resolution, not back in time.
FLAT FEE TAX SERVICE, INC. CLIENTS HAVE 90% IRS SETTLEMENT SUCCESS RATE.
Offer in Compromise San Diego
California IRS Tax Attorneys
PER 2016 IRS STATISTICS, THE IRS APPROVED 42% OF ALL OFFER IN COMPROMISE SUBMISSIONS.
The Process of Negotiating an Offer in Compromise in SD
An Offer in Compromise (OIC) gives the IRS authority to settle outstanding tax liabilities, including fees and interest, for less in relation to the total tax due.
An Offer in Compromise is the ultimate IRS settlement and is definitely the simplest way to decrease the level of tax debt you have. A successful Offer in Compromise can save you 80, 90 and even 95% of your outstanding tax debt. This could literally mean the difference between surviving the ordeal or not in fiscal terms.
A Quick Word Of Warning
about Applying for an
Offer in Compromise settlement
One thing that our IRS tax relief team has seen occur over and over through the years is people try to negotiate an Offer in Compromise agreement without an IRS Tax Attorney. The IRS could reject your Offer in Compromise simply because you didn't fill in a box, and you will have divulged a great deal more information than you should have.
TAXPAYERS WHO DO THEIR OWN OFFER IN COMPROMISE SUBMISSIONS HAVE A 30% CHANCE OF SUCCESS.
The very best advice our IRS tax relief firm can give you is this – don’t try and negotiate an Offer in Compromise (OIC) on your own. You really do need expert IRS tax help to make certain you don’t sabotage your own case.
To request an Offer in Compromise (#OfferinCompromise) arrangement depending on doubt of collectibility means you question your power to ever pay the IRS the full quantity of tax owed. That is usually a tough conclusion to negotiate by yourself, so we urge discussing with the expert before trying anything.
What Determines Uncertainty
as to Collectibility?
Before requesting an agreement for this reason, taxpayers must unable to cover their tax debt by:
Liquidating all assets, or
Meeting with the guidelines for an Installment Agreement
The IRS Procedure of
You’ll find just two basic components employed by the IRS to determine exactly what a taxpayer can or cannot pay:
Worth of assets possessed, and
Asset Evaluation – The IRS will want to understand the current value of assets if sold today. These assets include property, vehicles, boats, home furnishings, investments, retirement savings, and any other properties of value.
When reviewing your request to close your case as Currently Not Collectible (CNC), Offer in Compromise (IRSsettlements) examiners determine the value of your assets, your future earning capacity, and any assets available to you personally that are beyond the range of the government.
They are going to most likely claim the advantage may be worth over a citizen will. Asset values can be questioned and adjusted based on conditions, and usually a reasonable compromise can be reached. This is another reason why you will need an experienced IRS Tax Attorney to handle your Offer in Compromise.
The Internal Revenue Service (IRS) may want to establish how much a taxpayer can pay monthly on a five-year payment arrangement. They’ll consider many factors like work status, health, age, and instruction to predict the probability of future income increases.
NEED IRS TAX RELIEF?
NEED AN IRS OFFER IN COMPROMISE?
CALL FLAT FEE TAX SERVICE, INC.