IRS OFFER IN COMPROMISE

A tax compromise is a contract that you enter into with the IRS.

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IRS Offer in Compromise

The Holy Grail for Taxpayers

This is the "Big One", the Gold Standard by which the savvy and expertise of tax resolution services such as Kowal Tax Clinic are judged. This is the Super Bowl Ring.

You win this, and you permanently erase your tax.

That's a fact.

That's not hype.

What is hype is to think that everyone will win, and settle for pennies on the dollar.

If you are worth nothing, pennies, then you will settle for pennies.

You only get this for demonstrated hardship, and the IRS Agents handling these requests are Nobody's Fool.

I reject as clients hundreds of Offer requests each year, as I don't want to steal money from taxpayers for a worthless course of action

Basically, IRS is going to measure your "Reasonable Collection Potential" and if it's short of what you owe IRS, then you MAY get the Brass Ring.

What is Reasonable Collection Potential? Just what is says - - what can the IRS reasonably expect to collect from you right now: what's the quick sale value of your house, other investments? How much cash will you have available to pay IRS over the next 60 months.?

All of this is determined on a very tricky form, 433-A Collection Information Statement. Doing this form to get an advantage for the taxpayer is an art - - we are good at this.

You only get one chance to pursue your Offer. You say one thing, and then later backtrack. It's too late.

In the process, only one person handles your case. Dealing with the Revenue Agent in this matter is likewise an art form. You are begging them. You cannot demand anything, or get impatient.

Professional Tax Help

Now don't think that you have an absolute right to an Offer in Compromise. Based upon your past behavior in tax matters, IRS may not even consider your request.

How so?

If you have a history of filing and paying late

If you have defaulted on prior Installment Agreements

If you have been overly, let's say difficult, in IRS audits

Let me give you an example of a recent Offer in Compromise which was accepted. A Fifty-ish woman was laid off her job as a benefits manager. She was earning approx $70,000 annually. Divorced, she spent most of her free cash caring for her ailing Mother. After being laid off she decided to become a Pastor and entered a Theological School, from which she recently graduated. Now this fine woman has her $50,000 tax deficiency compromised to $5,000. She met all the requirements and will start afresh, and will file on time and pay her taxes in the future.

Take the first step

Give us a call, and we'll take a look at your situation and advise as to whether you are even in the ballpark for an Offer-in-Compromise.

Oh, and keep this in mind: when you make the offer you must send in 20% of the offer in cash. You don't get that refunded if your offer is rejected.

So, let's say you owe IRS $60,000 and you will offer them $20,000. You must send in $#4,000 [20% x $20,000] for the offer to be even considered. Plus, of course, you are paying our fees, which, to be honest are going to run from $3,000 and up.

At Kowal Tax Clinic we are NOT an Offer-in-Compromise factory. We will not waste your money chasing "The Impossible Dream".