7 Things You MUST Know for 2017!
1. Take Advantage of Our Free Resources
Check out all of the free resources on our site, then call for a free consultation. You have access to all of this information FREE, and once you have the knowledge, then you can decide what you want to do. You can now make an informed decision that will better you in the long term.
2. Understand the Goal of any IRS Settlement
The goal of any IRS Settlement negotiation (Offer In Compromise) is to convince the IRS the amount of money they can collect is as small as possible. The IRS does not make it easy to negotiate a settlement and reduce or eliminate existing tax balance, but it is 100% possible if everything is done correctly.
3. Know the Time it Takes
It usually takes anywhere from 6 to 12 months to negotiate an Offer in Compromise (estimate is based on an experienced tax professional handling case). If an IRS Offer Examiner rejects the initial OIC submission, then it can take over 2 years to go through Appeals! It should be noted that the entire time an individual's Offer is pending, he or she is protected from IRS enforcement action. Wages cannot be levied or garnished while an OIC is pending.
4. Know the Qualification Formula
There is a specific formula that needs to be computed in order to confirm candidacy. You should not proceed with an Offer in Compromise (OIC) until you know you qualify. A glimpse at the formula is shown below in our Infographic. The reason most OIC’s fail is because the computations are not done correctly and the IRS will look for a reason to reject.
5. Be Cautious with who you Hire.
You really only get one shot to submit an Offer in Compromise (If it fails, you have to wait until there is a significant change in your collectability). There are many tax attorneys who don’t even know the OIC formula. They will go through the motions, telling you they did everything they could, but then lose the case and you gained absolutely nothing.
6. Get Trusted and Reliable Help
On tax balances that exceed $20,000, the best advice we can give is to work with a business that is trustworthy and credible. That's it. You would never attempt to represent yourself in a court of law. The same holds true with the IRS. Once again, you only get one shot at an OIC and you need to make it count before the IRS bullies you into paying more than you really could have settled for had it been handled properly.
7. The Final Step
If computed properly, the IRS will accept an offer based upon "reasonable collection potential". This simply means the IRS cannot force us to settle for an amount that is beyond what you can reasonably afford to pay back without causing financial hardship. This is how we ensure each and every client we represent receives the absolute lowest possible settlements. We are aggressive and fight to ensure we always get the lowest monetary settlement before we accept. Quite simply, it is essential that everything is computed and documented in a manner that prevents the IRS Offer Examiner from being able to contest or deny our proposal. It all comes down to knowing how the process works and how to win an Offer In Compromise case.