TAO – Offer in compromise – Pennies on the dollar?
IRS enforcement efforts are subject to swings between more and less aggressiveness based on the national economy, revenue needs and pure politics. In the Eighties and again in the late Nineties, Congress was moved by public pressure (including a certain 60 Minutes broadcast in which I was interviewed) to enact The Taxpayers’ Bill of Rights I and II. As a result, a longstanding but little-used practice whereby the IRS would consider forgiving large tax bills where the likelihood of collection was small became part of the law.
Today, taxpayers are inundated by ads and high-pressure calls promising to settle their problems for “pennies on the dollar”. But it’s not just that easy. Nine of ten offers in compromise are rejected. However, more than nine of ten we handle end up accepted. What is the difference? Preparation. Understanding what the IRS wants and needs to grant acceptance. Perseverance. Research. Relationships. Where to apply the Manual. The Code. Court precedents. When and how to appeal. How to analyze the financial and other reasons which might support the Offer. How to present them. A sales rep is not likely to successfully navigate such a maze. Neither is a cookie-cutter standard form process. Each situation is unique, and calls for an individually designed and submitted plan.
We have processed and successfully obtained accepted offers for parts of three decades now. Many of our Offer clients come to us after spending thousands and getting nowhere. Don’t make that same mistake. Speaking as one who was part of the process which brought about the change in Offer procedures and availability, anyone who wants to submit an offer should engage the help of someone who is directly qualified and experienced. Who has handled a lot of offers with a lot of success. Who is the person who will actually do the work. Who is experienced, tenacious, and available on a regular basis.
There are reasons these qualifications apply. It’s the only way to get to the Lowest Legal Tax.
Gary R. Dettloff, J.D.
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looks great gary!!
Joe