TaxGalaxy
IRS Problem Solvers
I

YOU HAVE IRS PROBLEMS ?

YES, WE CAN HELP !

OFFER IN COMPROMISE:

DO YOU WANT TO SETTLE WITH THE IRS ?  WELL, HERE IS YOUR OPPORTUNITY,  IF YOU QUALIFY, YOU CAN SETTLE YOUR TAX LIABILITIES FOR LESS THAN THE FULL AMOUNT AND IT MAY BE FOR PENNIES ON THE DOLLAR. WITH SOME PRELIMINARY INFORMATION WE CAN ASSESS YOUR SITUATION TO DETERMINE IF YOU QUALIFY FOR OIC PROGRAM. IF YOU DON'T WE'LL EXPLAIN WHY AND RECOMMEND AN ALTERNATE SOLUTION TO YOUR TAX PROBLEM.

NOW, WE CAN HELP!

FIRST OF ALL, LET US BRIEFLY EXPLAIN HOW THE OFFER IN COMPROMISE PROGRAM WORKS. THIS IS AN AGREEMENT BETWEEN YOU AND THE IRS THAT SATISFIES YOUR TAX LIABILITY.  THE IRS WILL ACCEPT LESS THAN FULL PAYMENT UNDER THE FOLLOWING CIRCUMSTANCES:

1)         DOUBT AS TO LIABILITY - THERE IS NO ASSESSED TAX IS CORRECT.

2)         DOUBT AS TO COLLECTIBILITY - DOUBT EXISTS THAT YOU COULD EVER PAY

3)         EFFECTIVE TAX ADMINISTRATION - THERE IS NO DOUBT THE TAX IS CORRECT
           AND NO DOUBT THE AMOUNT OWED COULD BE COLLECTED, BUT AN
           EXCEPTIONAL CIRCUMSTANCE EXISTS. THIS COULD BE AN ECONOMIC
           HARDSHIP OR FULL PAYMENT WOULD BE UNFAIR AND INEQUITABLE.

IF YOU QUALIFY:

IF YOU QUALIFY FOR AN OFFER IN COMPROMISE AND MEET OUR CRITERIA, OUR VETERAN TAX PROFESSIONALS WILL CONTACT THE IRS FOR YOU. WE WILL THEN PREPARE AND NEGOTIATE YOUR OFFER IN COMPROMISE,  THE NEGOTIATIONS USUALLY CENTER AROUND THE PROPER VALUATION OF YOUR ASSETS, (THAT'S THE AMOUNT THE IRS BELIEVES THEY COULD COLLECT FROM A QUICK SALE) AND ACCURATE INFORMATIN ABOUT MONTHLY INCOME AND LIVING EXPENSES

EFFECTIVE 11/01/2003  THERE IS A $150.00 APPLICATION FEE  PAYABLE TO THE U.S. TREASURY FOR SUBMISSION OF AN OFFER IN COMPROMISE.

IN YEAR 2005 (TIRRA) CRATED MAJOR CHANGES TO THE IRS OIC PROGRAM AS IT RELATES TO LUMP-SUM OFFERS , PERIODIC PAYMENT OFFERS. AND DETERMINATION AS TO WHEN AN OFFER IS ACCEPTED.  THESE CHANGES AFFECT ALL OFFERS RECEIVED BY THE IRS ON AFTER JULY 16TH 2006.

TIPRA, SECTION 509, AMENDS INTERNAL REVENUE CODE SECTION 7122 BY ADDING A NEW SUBSECTION (C) "RULES FOR SUMISSION OF OFFERS IN COMPROMISE"  WHICH ESTABLISHES THE FOLLOWING:

 1)     A TAX PAYER FILING A LUMP - SUM OFFER MUST PAY 20 PERCENT OF THE
        OFFER AMOUNT WITH THE APPLICATION (IRC 7122(C)(1)(A)). A LUMP-SUM OFFER       
        MEANS ANY OFFER OF PAYMENTS MADE IN
FIVE OR FEWER INSTALLMENTS.

 2)    A TAX PAYER FILING A PERIODIC-PAYMENT OFFER MUST PAY THE FIRST
        PROPOSED INSTALLMENT PAYMENT
WITH THE APPLICATION AND PAY
        ADDITIONAL INSTALLMENTS WHILE THE IRS IS EVALUATING THE OFFER (IRS SECTION
        7122(C)(1)(B)).  A PERIODIC-PAYMENT OFFER MEANS ANY OFFER OF PAYMENTS
       MADE IN SIX OR MORE INSTALLMENTS.

THE IRS CONSIDERS THE 20 PERCENT PAYMENT FOR A LUMP SUM OFFER, AND THE INSTALLMENT PAYMENT ON A PERIODIC PAYMENT OFFER, AS "PAYMENTS ON TAX" AND ARE NOT REFUNDABLE DEPOSITS REGARDLESS OF WHETHER THE OFFER IS LATER RETURNED, WITHDRAWN, REJECTED OR TERMINATED BY THE IRS.

THERE ARE THREE PAYMENT PLANS THAT THE IRS MAY AGREE TO:

 1)     CASH (PAID IN 90DAYS OR LESS)

2)      SHORT-TERM DEFERRED PAYMENT (MORE THAN 90DAYS, UP TO 24
         MONTHS)

3)     DEFERRED PAYMENT (PAYMENT TERMS OVER THE REMAINING
        STATUTORY PERIOD FOR COLLECTING THE TAX)

DURING THE TIME THE IRS IS REVIEWING YOUR OFFER, THEY WILL WITHHOLD COLLECTION ACTIVITIES:

1)      WHILE THEY INVESTIGATE AND EVALUATE THE OFFER.

2)      FOR 30 DAYS AFTER THEY REJECT AN OFFER

3)      WHILE WE APPEAL AN OFFER REJECTION

THIS IS A COMPLEX PROCESS BUT WE CAN HELP YOU GET YOUR LIFE BACK.