The IRS in an effort to streamline the OIC process or as some claim to cloud the process further made some small changes to the OIC process.  The doubt to liability option will not be included be on the new form nor we dual OIC’s be accepted.  Nothing earth shattering about the changes, the $150 filing fee and OIC offer amount options still exist.  The offer mill firms, firms who crank out bogus and doomed for rejection OIC’s and charge clients in advance for them may have a few more hurdles to overcome convincing the naïve client to sign with them. 

What is an Offer-In-Compromise?
The Offer-In-Compromise program of the Internal Revenue Service allows a taxpayer who owes federal taxes, penalties, and/or interest to pay only a fraction of the total amount owed. It is designed for taxpayers who either: 1) can not afford to pay the taxes, penalties, and interest owed within a reasonable time, or 2) can afford to pay what is owed within a reasonable time, but believe that they either do not owe what the Internal Revenue Service claims or believe that it would be unfair or inequitable to have to pay the taxes, penalties, and interest in full. (more…)

Do not speak to the collection agents of IRS or State before you know your rights! Also do not sign up with a firm that can’t provide you with a clear plan on how to solve your problem.

It is understandable to be afraid when after receiving Levy notice. But don’t let fear be the driving force in deciding how to help solve the problem. The collection agents of IRS and State love it when the taxpayer who has just received the Levy notice calls, they can hear the fear in their voice and they know the taxpayer will tell them more than they should and agree to terms that are to their detriment. The tax collection agent doesn’t care about your financial problems or the reason why you have them! It is their job to collect from you and get onto the next taxpayer.

At the same time, “fast talking sales people from boiler room firms” will tell the caller what they want to hear as long as the agreement is signed and check has clears the bank and often the tax problem isn’t resolved.

Levies can be released quickly provided the taxpayer is in compliance with tax returns. What information is needed to get the Levy Released is dependent on the amount and type of tax liability. Most taxpayers tax liabilities can placed in an affordable Installment Agreement or in Non-Collectable status as a precursor to filing an Offer-In-Compromise. It is important that the taxpayer understand why a tax solution is being negotiated on their behalf and what is the up and downside of the solution.

A common trick by the “boiler room firms” is to file an Offer-In-Compromise or place a taxpayer in an Installment Agreement knowing the taxpayer will be either default or be rejected because the coming year tax liability. These firms do this in order to charge their client’s more for the same service down the road.

When you call us we will provide you a plan on how we will get the Levy Released and put into motion a plan to resolve your tax liability that is in your best interest that is based upon your unique financial circumstances.