SOURCE: Fresh Start Tax, LLC

Fresh Start Tax, LLC

July 22, 2011 06:00 ET

Fresh Start Tax: The IRS Offer in Compromise

FORT LAUDERDALE, FL--(Marketwire - Jul 22, 2011) - Today, so many companies are advertising that they can settle IRS tax debts for pennies on the dollar. Fact or Fiction? The facts are this. The IRS receives about 50,000 Offers in Compromises each year. About 25% or 12,000 Offers are accepted yearly.

It is very difficult to get an Offer in Compromise accepted. The IRS does as much due diligence on an Offer as they do on a 10 million dollar audit case. They go through laborious detail on all the information because each offer accepted is open to public inspection in the IRS District Offices.

The IRS must ensure the program standards are being met and that all rules and regulations are followed perfectly. The normal Offer in Compromise that gets accepted will find that the taxpayer's assets are few and income levels are very modest. A rule of thumb, the IRS can accept no less than the total equity in all of your assets and will also look closely at your income. Local standards are applied for your living expenses in hope to collect some monies on the income side as well. Local standards allow minimal living expenses at most.

Michael Sullivan, a former IRS Agent and Offer in Compromise Instructor at the IRS, knows every detail of the program. Mr. Sullivan, when speaking and teaching at IRS seminars or forums, warns taxpayers from filing an Offer in Compromise on their own because many times it leads to the IRS finding hidden information or can possibly lead to a full scale audit. The IRS will run a full scale check on credit reports and other searches to dig up any information they can on your financial history. They will pull old loan applications to find out what assets may have possibly been sold or transferred to other people for income.

Your best chance of getting an Offer accepted is through a professional tax firm who knows the drill.

Other options available to help settle or close out your IRS case are through hardships and payment agreements.

Most IRS cases are closed through current Hardships, then Payment Plans and lastly the Offer in Compromise.

Fresh Start Tax, LLC has resolved thousands of IRS cases since 1982 and can get you the very best tax settlement to pay the very lowest amount allowed by law.

If you would like a free consultation, call Fresh Start Tax, LLC today.

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Contact Information

  • Contact:
    Steve Wilkinson