Offers - Process
An Offer in Compromise is a process whereby the taxpayer offers
the government a reduced sum of money in order to settle a delinquent tax bill.
An offer is compromise is not an amnesty program, nor is it motivated
by the governments' desire to cut delinquent taxpayers a break. Rather, it is a
calculated business decision by the taxing agencies to accept a smaller sum in lieu
of spending the collection resources on chasing the taxpayer until the statute of
limitation on collecting the tax runs out. An offer is compromise is not an amnesty
program, nor is it motivated by the governments' desire to cutdelinquent taxpayers
a break. Rather, it is a calculated business decision by the taxing agencies to
accept a smaller sum in lieu of spending the collection resources on chasing the
taxpayer until the statute of limitation on collecting the tax runs out.
The average Offer in Compromise process takes 9 to 24 months
depending on the district. Here is a typical process and timeline for an Offer in
Compromise:
Step 1 - Planning, Preparation and Submission
We review your case to determine whether you qualify for an Offer in Compromise,
and on what terms. Upon completing our Offer in Compromise analysis we prepare and
submit the Offer in Compromise package to the IRS. Our tax attorneys will also advise
your about all aspects of the Offer in Compromise process.
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qualify for an offer
Step 2 - The IRS Receives the Offer and Asks For More Info
The IRS determines whether your Offer in Compromise meets all of the procedural
requirements of the Offer in Compromises manual. The IRS requests proof of the taxpayer's
financial condition to determine the adequacy of the Offer in Compromise.
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qualify for an offer
Step 3 - The IRS Reviews the Financial Information
The IRS reviews your Offer in Compromise and attached documents to determine whether
to accept your Offer in Compromise and for how much.
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qualify for an offer
Step 4 - We Aggressively Negotiate With the IRS
We aggressively present your Offer in Compromise case to the government in order
facilitate most favorable acceptance of your Offer in Compromise The success of
your Offer in Compromise greatly depends on the skill an experience of your tax
representative. Our tax attorneys have extensive experience in all aspect of the
Offer in Compromise process.
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Step 5 - We Appeal Unreasonable Refusals to Settle
If your Offer in Compromise is unreasonably refused, we immediately appeal the case.
Appeals of rejected Offers in Compromise are generally reviewed by an Offer in Compromise
appeals officer in the taxpayer's district.
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qualify for an offer
Step 6 - You Pay-Off Your Reduced Tax Bill
If your Offer in Compromise is accepted, you start making the payments on your reduced
tax bill based on the agreed terms. An accepted Offer in Compromise requires the
taxpayer to remain compliant with all future tax laws for 5 years from acceptance
of the Offer in Compromise.
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