Offer In Compromise
Taxpayers who are unable to pay or believe they do not owe their current federal tax debt may be eligible for an IRS Offer In Compromise. If a taxpayer files a successful offer in compromise, then the IRS agrees to settle the tax debt for less than the full amount owed. The IRS will accept or reject an offer based on the taxpayers ability to pay and the amount being offered. Professional help is advisable when creating an offer to ensure your true ability to pay is reflected in the offer. We understand the criteria the IRS will use to judge your offer and will work with you to put together an offer that meets the requirements and is likely to be accepted. We will also ensure you are current compliance with your federal taxes — a requirement for offer processing.
We are currently offering special fixed pricing of $350 to submit an offer in compromise for clients meeting the streamlined offer criteria. If your household income is under $100,000/year and you owe less than $50,000 in federal taxes then this offer is for you. If you are self-employed your gross business income will need to be under $500,000/year to qualify. Contact us for a free consultation to see if you qualify. Once an offers is processed then all other collection activity will stop. Reach out today to get started.
There are 3 main reasons we can use to submit an offer in compromise: doubt as to liability, doubt as to collectability, and effective tax administration. An enrolled agent from Advanced Tax Services will work with you to determine which type of offer is best for your situation and assemble the best possible offer for you. To submit an offer you will be required to provide detailed financial information to the IRS. We will help you identify this information and once you provide the data we will build your offer package.
Doubt As To Liability
If you have a legitimate reason to doubt that you actually owe the tax, but believe your account is currently in a state where it may be easier to settle the liability rather than fight the assessment, then this type of offer may be right for you. Doubt As To Liability (DATL) offers do not require the same financial statements that the other offer types do. However, there must be a legitimate doubt. Furthermore, the liability cannot be due to a final court judgement.
Doubt As To Collectability
If you do not have the income or assets necessary to pay a tax obligation then you may be a candidate for a doubt as to collectability (DATC) offer. We will identify what the IRS will see as your reasonable collection potential (RCP) and build an offer based on that. A myriad of deductions are available when calculating your RCP. Our expert enrolled agents will carefully review your income, assets, and expenses and ensure you are submitted an offering that is best for you while also being acceptable to the IRS.
Effective Tax Administration
In some case a taxpayers RCP may reflect an ability to pay, but other circumstances in their life may lead to significant hardship if they pay. This is were an effective tax administration (ETA) offer comes into play. With an ETA offer we will build the case identifying the special circumstances in your life and why they prohibit you from paying the debt. For example, if you have a large amount of savings and you intend to use that savings for a life saving surgery. You might not qualify for a DATC because your assets exceed the amount of the debt. However, you may qualify for an ETA offer based on the circumstances in your life. Contact us to identify what solution might be best for you.