August 22 2014 • CommunityTax

Offer In Compromise

Every week, the tax professionals here at Community Tax get to be the bearers of very good news. One of the most important things we do to help our clients is to put them into tax resolution plans like the Offer in Compromise. On a weekly basis, we get to send out letters to some of our clients informing them that their Offer has been accepted and that they are now in the final phase of settling their unpaid back taxes for a small portion of the original balance.

A lot of work has to be done before an Offer in Compromise is approved by the IRS or state tax agency. Our team of tax debt experts has to determine an individual’s eligibility for the OIC program. The resolution team has to analyze the client’s finances and determine how much of a payment can be made. The Offer in Compromise is not a simple method of settlement, as it involves a thorough investigation to determine eligibility and to prove its worth to the IRS. However, when an individual does qualify for the OIC and it can be accepted, taxpayers often settle in this program for a very small percentage of what they owe to the tax agency.

Lately, Community Tax has had the pleasure of reporting a number of very successful weeks of Offer in Compromise resolutions. Within the past couple of weeks, we’ve saved clients over $1,000,000. In the table below, you can see the names of the most recent taxpayers to receive notices of successful acceptance of their Offers in Compromise. This success is due to the dedication of our practitioners, case managers, processors and analysts. The information shown here includes the names of the Community Tax team members that worked on the case, the first names of the clients (for privacy reasons), the agencies they owed and the amounts involved in their resolutions.

Agency	Tax Balance	Settlement	Savings	Client Name	Practitioner	Case Processor
Federal	$20,511.00	$500.00	$20,011.00	Jose	Irina Cedano	Daniel Kattan
Federal	$17,916.00	$4,800.00	$13,116.00	Randy	Jennifer Schaffer	Robert Kitson
Federal	$11,228.00	$500.00	$10,728.00	Anthony	Marek Grabowski	Daniel Verastegui
Federal	$39,404.00	$500.00	$38,904.00	Douglas	Robert Kitson	Emily Brisseau
Total	$89,059.00	$6,300.00	$82,759.00

Often, though not in every case, the settlement amount for an Offer in Compromise is $500. Some clients receive higher payment amounts and others have to pay less than $500. The main determining factor for the settlement is the individual’s finances and the proposal that is submitted to the IRS. In almost every situation, a taxpayer with an Offer in Compromise will pay their remaining balance in a single payment. As soon as this payment is remitted, the debt is considered satisfied. From this point on, the individual must follow all taxpayer compliance guidelines set by the government. All tax returns must be filed on time and any balances accrued must be paid by their deadlines. If this method is followed, no future tax problems will be issued.

Owing the IRS for unpaid back taxes is a burden no one likes to face. It may seem like the fastest and most effective way to settle tax debt is to call into the IRS to have them set up an agreement with you. However, negotiating with the IRS on your own behalf can result in less than favorable outcomes. With a team of tax debt specialists like those at Community Tax on your side, your chances of getting into a resolution program that fits your personal situation increase greatly. Our practitioners and case processors work tirelessly to find the best settlement plan for your case and to walk you through all the necessary steps. With a single phone call, you could be on your way to financial freedom. If you are struggling with an unpaid tax balance, call Community Tax today to speak with an agent that can get you through your tax issues and out of debt!