Offer in Compromise
A powerful settlement tool for qualified taxpayers
For appropriate cases, the IRS will accept a taxpayer settlement in an amount less—in many cases much, much less—than the total amount of taxes, penalties and interest owed by the taxpayer. This IRS program is known as the Offer in Compromise Program (IRS Form 656). If utilized correctly, this program can reduce an income tax debt literally to “pennies on the dollar”. Our professionals have resolved cases in which a client has owed the IRS over $100,000 and settled with the IRS for less than $1,000. Obviously, not all clients are eligible for such profound savings, and each client’s personal tax situation is unique. However, for many of our clients, the Offer in Compromise is the best tool for settlement of their tax debts. Call now to see if you are eligible.
The Offer in Compromise process is far more complicated than many taxpayers and many financial commentators believe it to be. Many people believe the process simply involves filling out a few forms, sending them to the IRS and obtaining a “pennies on the dollar” settlement. Some taxpayers even believe it’s simply a matter of calling the IRS and proposing a highly discounted settlement. In many cases, making that call will harm, rather than increase, your chances of getting the best settlement possible. Once the IRS has had a chance to determine your financial statements, unless you have prepared and presented those statements in accordance with the best accounting and tax practice, you may have difficulty getting the best possible settlement. There is a high degree of skill and professional judgment needed to position your case and your personal financial situation for the best possible settlement. That’s where United Tax Group comes in. We will not only lay out the necessary steps to obtain an Offer in Compromise settlement, we will walk you through the entire process and we will apply our years of experience to help present your case in the best way possible.
Applicants for the Offer in Compromise Program must prove to the IRS, beyond any reasonable doubt, that they will be incapable of meeting their necessary living expenses after paying an outstanding tax debt through a conventional installment agreement. There are two major elements to this process. The first is to deliver to the IRS a properly prepared application for the Offer in Compromise Program. Our tax professionals will prepare this document with you. The second element is the presentation of evidence that the taxpayer will have no funds left over to pay the IRS after all necessary living expenses are paid for. Our staff will help you organize and present these materials in the best possibly way. After the submission of the application and proofs mentioned above, assuming the taxpayer is eligible for the program, the IRS will grant the taxpayer a settlement in lieu of the actual amount of back taxes owed. As mentioned earlier, this settlement can sometimes be a fraction of the original debt.
In order to present the IRS with the proper evidence required for the Offer in Compromise Program, the taxpayer is required to submit a financial statement known as Form 433-A. In this financial statement, the taxpayer divulges its assets, income, and necessary living expenses. Based on this financial disclosure, the IRS considers how much income a taxpayer is earning, as well as the amount of money the taxpayer has to pay in order to support its family. These support costs will be permitted by the IRS to be deducted before making the determination of how much income remains for servicing the taxpayer’s tax obligation. However, the IRS can be very restrictive when considering what should and should not be a “necessary living expense.” For example, the IRS considers an automobile payment of $400 a month to be reasonable. In cases where the actual payment exceeds $400, the IRS will grant the taxpayer the $400 maximum to deduct, but will deem the excess an unnecessary expense. Transportation expenses are another good example. For a household with one vehicle, the IRS only allows $235 a month for expenses relating to the operation of that vehicle, including gasoline. Because of rising gas prices, this amount becomes more and more outdated by the year. However, the IRS has not changed its policy on this expense. Knowing the best way to present your finances in the applicable financial disclosure forms is a key component to working out a feasible settlement. Our tax professionals have completed literally hundreds of applications and disclosure forms and know exactly how to best present your situation.
If you qualify for the Offer in Compromise program, the professionals at United Tax Group guarantee that we can get you a settlement for a fraction of the amount you would otherwise owe. Don’t take a chance and attempt to settle with the IRS through this program alone.
Contact the professionals at United Tax Group at (877) 829-3703 today and see if you qualify.
