Ronald, Here Are Your Articles for Wednesday, April 26, 2017
Is this email not displaying correctly?
View it in your browser .
Website Services Qualifications Blog Contact Us
Share Save

The Truth About Offers In Compromise

 

In the real world, people and businesses settle for less all the time.  So when they come to me with a tax problem, they want to know if they can make a deal with the IRS. 

Who would turn down $90,000 to resolve a $100,000 debt?  The IRS, that’s who.

Think about it.  If the government would always let you settle your balance for less, no one would pay their taxes on time.  You would just take an interest-free loan from the IRS.

So for people who can afford it, the IRS wants all of the money owed, including penalties and interest.  But what about those who truly do not have the ability to pay?  Well, those folks may be eligible to make a really great deal through an Offer in Compromise.

The concept of the OIC is that the IRS will never be able to get all of the money owed, so they should take everything they will ever get now.  The taxpayer must offer 100% of cash and savings, 80% of the value of all property, and the amount of money the taxpayer has left over every month after paying what the IRS believes are reasonable expenses multiplied by 12.  It is a little more complicated than that, but that is the general formula.

Some people are just not eligible.  They own too much or earn too much.  For others, we can get an agreement where they pay as little as $100 to settle the entire debt.  The IRS reported acceptance rate is 42%, but our success rate is over double that because we submit Offers for those who truly qualify for the program.

It does not seem fair that some people pay everything they owe and others get off the hook for almost nothing, but as long as the IRS is accepting Offers in Compromise, we will be submitting them.

 
Share Save

Your Comments

Steven N. Klitzner PA
Law Office of
Steven N. Klitzner, P.A.
2627 N.E. Ives Dairy Road
Suite 213
North Miami Beach FL 33180
Call us for help with the IRS at 305-682-1118
Email us at help@floridataxsolvers.com
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to: rmarini@taxlaw.ms

Mailing address: 2627 N.E. Ives Dairy Road Suite 213, North Miami Beach, FL 33180