What would you do if we told you that you could eradicate back taxes owed to the Internal Revenue Service (IRS) and get you back to being debt-free?
There are many taxpayers that would jump at the first opportunity to have a portion of their tax debt forgiven while agreeing to pay back the remaining balance. For this reason, it is surprising that more American citizens are not aware that they have the option of proposing an Offer in Compromise to the IRS.
An Offer in Compromise (OIC) is one of the best tax resolution services available. It can help taxpayers settle their debt for less than the amount that is owed.
There are approximately 16 million Americans that owe the Internal Revenue Service , including an additional 3 million small businesses. Unfortunately, of that large segment of the U.S. population, only a small portion (about 25,000) agree to settle their tax debt with the IRS through an Offer in Compromise each year.
While an Offer in Compromise is a fantastic way to settle back taxes, it is not all that common. The first and most obvious reason is that the Internal Revenue Service believes that most taxpayers can pay back their debt in a reasonable amount of time through an installment agreement. Consequently, many taxpayers avoid even submitting an OIC proposal because they are unaware of the service or do not think they qualify.
Nonetheless, it should not discourage you from considering an Offer in Compromise as a legitimate tax resolution remedy. Proposing an OIC to the Internal Revenue Service may enable part or most of the debt to be forgiven. Read on to learn how we’ve helped previous clients with their OIC.
Levy & Associates had a client who is an attorney that hired us after his prior Power of Attorney failed to file a timely appeal on his rejected Offer in Compromise. Levy & Associates was able to successfully get a $35,043 Offer in Compromise accepted on his $150,000 balance. Now that his IRS debt is behind him, his longtime girlfriend agreed to marry him!
When the client hired Levy & Associates to manage his tax debt, it was apparent the attorney had broken rules like using his corporation to pay personal expenses. After correcting violations, we moved forward with drafting an Offer in Compromise proposal.
After months of negotiations regarding the taxpayer’s income, expenses, and assets, we successfully got the IRS to forgive thousands of dollars that the taxpayer owed to the federal government.
When Levy called the client to present the good news, the client was beyond relieved. For the last several years he had lived with a great deal of stress over not being able to afford anything beyond basic expenses. The client was finally able to breathe a sigh of relief now that the IRS troubles were behind him.
In another situation, an Offer in Compromise appeals officer determined that our client had the ability to cover $18,680, which the client could not afford to pay. After a thorough review of the appeals officer’s analysis and our client’s financial information, Levy was able to get an offer accepted for $5,183 . Our ecstatic client is borrowing the money from a family member to fully pay back the offer.
When we started reviewing our client’s financials to determine a case resolution, everything was a mess. The client was self-employed, and his income varied widely. Furthermore, the client had many expenses that were not paid in full. Moreover, the IRS would not consider many of the write-offs as allowable expenses.
Before hiring Levy & Associates, our client never made estimated tax payments. Consequently, the client owed a substantial amount to the IRS for seven straight years until our tax preparation team guided him on making estimated tax payments. He is now current on owed payments to the IRS.
After a lot of negotiations, the revenue officer ended up allowing a lot of expenses that either were not being paid or were not allowable expenses and we set up a partial payment installment agreement for $3,000 per month on a $360,000 balance .
There are many types of tax debt resolution, including establishing a payment plan with the IRS . As a result, pursuing an Offer in Compromise is not always the most appropriate solution. Fortunately, there are tax professionals that work with taxpayers to determine eligibility for the Offer in Compromise debt relief program.
Levy & Associates Tax Consultants have decades of experience assisting clients with tax resolution services. We are remarkably familiar with the framework needed to qualify for an Offer in Compromise as well as drafting a proposal that will be difficult for the IRS to deny. Contact Levy & Associates for a free consultation at 800-TAX-LEVY or visit the official website .
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.