An offer in compromise is an agreement to settle debt between the IRS and a taxpayer who is unable to pay his/her taxes. If the IRS accepts the offer in compromise, the taxpayer will be relieved of all or some of the debt owed. Generally there are two reasons an offer and compromise will be accepted: 1) If the there is doubt of liability on the tax payer’s part, or 2) if the taxpayer has insufficient assets or income to pay the liability. Occasionally, an offer in compromise will be accepted if a taxpayer proves the tax would create an economic hardship. Once the taxpayer and the IRS have an agreement, the taxpayer must file and pay all taxes on time for the next five years or the offer will be forfeited and the original tax with new penalties and interest will be due once again.
As of May 2012, the Internal Revenue Service has released a new edition of the Offer in Compromise with respect to how a Financial Analysis is applied. This new IRS is more flexible and is designed to help a greater number of struggling taxpayers make a fresh start.
Sandra King Financial Services will meet with you and review your specific situation. Using IRS guidelines and their own employee manuals, we’ll take the time to carefully analyze your tax obligations and your true ability to pay those obligations. Don’t listen to vague promises of help in exchange for a significant payment. You’ve heard all that on TV commercials and you’ve seen it on the internet. The IRS has closed down many of these operations for false promises and little results. The taxpayers pay a high price before even knowing their chances of success. At Sandra King Financial, for a reasonable fee, we analyze your own unique situation with you and present you with a detailed plan of action. Using our detailed analysis, we work with you to bring about the best possible resolution for you and your family. You’ll be better educated as it relates to how the “system” actually works for you and against you at the end of our first meeting together. Call Sandra King Financial Services and get the ball rolling and end IRS letters.