The Offer in Compromise Process
Out experienced tax attorneys assist clients in every step of the IRS Offer in Compromise 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.
Our tax attorneys often tell clients that an IRS Offer is Compromise is not an amnesty program, nor is it motivated by the IRS' desire to cut delinquent taxpayers a break. Rather, it is a calculated business decision by the IRS to accept a smaller sum in an Offer in Compromise in lieu of spending the collection resources on chasing the taxpayer until the statute of limitation on collecting the tax runs out.
Even with the help of our seasoned tax attorneys, an 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 - Out Tax Attorneys Plan, Prepare and Submit The Offer
Our Tax Attorneys review your case to determine whether you qualify for an Offer in Compromise, and on what terms. Upon completing our Offer in Compromise analysis our attorneys 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.
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 IRS Offer in Compromises manual. The IRS requests proof of the taxpayer's financial condition to determine the adequacy of the Offer in Compromise.
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.
STEP 4 - Our Tax Attorneys Aggressively Negotiate With the IRS
Our Tax Attorneys aggressively present your Offer in Compromise case to the IRS 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 attorney. Our tax attorneys have extensive experience in all aspect of the IRS Offer in Compromise process.
STEP 5 - Our Tax Attorneys Can Appeal IRS' rejections of Offers in Compromise
If your Offer in Compromise is unreasonably refused, our tax attorneys immediately appeal the case. Appeals of rejected IRS Offers in Compromise are generally reviewed by an IRS Offer in Compromise appeals officer in the taxpayer's district.
STEP 6 - You Pay-Off Your Reduced Tax Bill
If your IRS 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.