An Offer In Compromise Can Help Taxpayers in Economic Hardship Solve their Unpaid Taxes
The first notice of tax liability received can cause a lot of unpleasant feelings and stress in an individual’s life. The best advice anyone can give for taxpayers that owe federal or state tax liability is to get help with their economic hardships. Community Tax, with a well-trained team of experts in the field of income taxes, has the experience necessary to get personalized resolutions for its clients. Some of these clients qualify for an Offer in Compromise, which settles a tax balance at a fraction of the original amount.
The Offers in Compromise program is not the easiest path to take to tax liability settlement. The process can take a long time, compared to some others, and requires a detailed look at a taxpayer’s finances, specifically their financial hardship and expected future income. However, if the IRS will accept the offer, it’s often worth it for the incredible discount provided through this method of resolution. The discount includes a reduced monthly payment plan for the years ahead, one that fits within their reasonable collection potential and their monthly income. Depending on your financial condition, you may not have to pay an application fee to the IRS. The tax agency does take into account basic living expenses to calculate what period payments they’ll accept in their installment agreement. Your entire financial situation comes to bear when it comes to an offer in compromise application.
That’s why hiring tax professionals who know how to negotiate installment plans with tax agencies, like those at Community Tax, is the most effective way to increase your chances of Offer in Compromise acceptance. The Internal Revenue Service allows for three main types of offers in compromise:
- Doubt as to Collectibility
- Doubt as to Liability
- Effective Tax Administration
Each pathway assesses your monthly income, a reasonable period to pay off your tax liability, and even future expenses that could affect your basic living expenses. Negotiating an OIC can help avoid collection activity and can be challenging, but there are acceptance rates for each route.
Tax experts will tell you that offer in compromise success stories are often as unique as the exceptional circumstances that can lead to outstanding tax liability.
Offer In Compromise Success Stories: Paying Tax Issues for Pennies on the Dollar
Recently, Community Tax worked with 10 clients to reduce a total of over $1,000,000 in tax dues to less than $100,000.
These 10 people saved over $900,000 thanks to their partnership with our hardworking tax negotiators, case processors, case managers and other resolution experts. It goes beyond simply filling out Form 656-B with all the correct information and making a good guess at your periodic payments. They understand how to negotiate appeal rights, find the right types of offers for changed circumstances and how to halt any collection actions due to federal tax liens.
The table on display here outlines the details of each client’s case. The columns show the agency the individual owed, the amount of their original balance, the Offer in Compromise settlement and the total savings in their case. Their remaining balances will be paid in periodic payments, based on each client’s financial situation.
We’ve also included the names of some of the team members that helped the taxpayers get their resolution approved. We’ve removed our clients’ last names for privacy purposes
| Agency | Tax Balance | Settlement | Savings | Client Name | Practitioner | Case Processor |
|---|---|---|---|---|---|---|
| Federal | $8,829.00 | $500.00 | $8,329.00 | Charles | Irina Cedano | Daniel Verastegui |
| Federal | $243,898.00 | $500.00 | $243,398.00 | Joy | Jeremy Brunner | Emily Brisseau |
| Federal | $29,511.00 | $500.00 | $29,011.00 | Inez | Jeremy Brunner | Angela Davis |
| Federal | $37,578.00 | $1,984.00 | $35,594.00 | Daniel | Jennifer Schaffer | Kevin Karpiel |
| State of Georgia | $133,433.00 | $72,000.00 | $61,433.00 | Charles | Daniel Urban | Daniel Urban |
| Federal | $163,171.00 | $500.00 | $162,671.00 | Jose | Daniel Kattan | Angela Davis |
| Federal | $15,264.00 | $500.00 | $14,764.00 | Francisco | Irina Cedano | Angela Davis |
| Federal | $169,871.00 | $500.00 | $169,371.00 | Steven | Jeremy Brunner | Daniel Kattan |
| Federal | $130,793.00 | $19,206.00 | $111,587.00 | Doina | Robert Kitson | Robert Kitson |
| Federal | $103,788.00 | $500.00 | $103,288.00 | Jose | Marek Grabowski | Daniel Kattan |
| Total | $1,036,136.00 | $96,690.00 | $939,446.00 |
As you can see, the financial statement shows balances that range from approximately $500 to thousands of dollars. For their privacy, we cannot say how many of them are low-income taxpayers, but we can tell you that monthly income is a strong consideration as the IRS determines your reasonable collection potential, ultimately leading to a monthly installment the IRS will accept to resolve their income tax liability.
This agreed upon resolution is a result of many factors, such as finances, that the IRS takes into account. The payments made from Offers in Compromise are mostly done in lump sum payments as part of the installment agreement between the taxpayer and the tax agency. One of the payment options is a lump sum cash offer, but you can count on all your bank accounts and assets being figured into finding the right initial payment.
Once the balance is completely paid, the taxpayer’s only remaining responsibility is to stay compliant with all future tax returns and federal tax deposits for the foreseeable future. They have to file and pay all future tax returns and estimated tax payments by their deadlines. Doing this will prevent any further trouble with their taxes.
What Can Disqualify You From an Accepted Offer in Compromise?
You may get your application sent back if you don’t qualify. The IRS makes it clear that, unless special circumstances call for it, they will return most applications given these conditions:
- Not getting a bill for at least one balance on your application (meaning you do have to have unpaid taxes)
- Falling behind on your federal tax returns
- Forgetting to give the necessary information on your application.
- Getting in an open bankruptcy proceeding
- Canceling paying taxes or not filing tax returns while you wait
- Not making all required estimated tax payments for the current year
- Having your case at the Justice Department
- Not including the application fee, which can be waived for low-income applicants below the poverty guidelines
Your Own Compromise Success Story Is Next, Thanks to the Team at Community Tax
If you’re an individual or business owner without the asset equity or monthly income to pay an outstanding tax liability, you might be a candidate for making an offer in compromise.
No tax liability is easy to get rid of.
Talk to a professional tax relief company first. Trying to tackle a process like the Offer in Compromise can be very difficult to handle alone in a reasonable period of time. You may calculate larger initial payments or more inconvenient periodic payments and will decrease chances of it being accepted by the appropriate tax agency. If you are looking to get rid of your tax dues once and for all, call an expert with the training and experience to help you get the best possible settlement in your case.
The staff of Community Tax works hard to place their clients in a fitting resolution program and sees it through to the end. Make a single phone call today and you could be on the way to federal and state liability freedom!
An Offer In Compromise Can Help Taxpayers in Economic Hardship Solve their Unpaid Taxes
The first notice of tax liability received can cause a lot of unpleasant feelings and stress in an individual’s life. The best advice anyone can give for taxpayers that owe federal or state tax liability is to get help with their economic hardships. Community Tax, with a well-trained team of experts in the field of income taxes, has the experience necessary to get personalized resolutions for its clients. Some of these clients qualify for an Offer in Compromise, which settles a tax balance at a fraction of the original amount.
The Offers in Compromise program is not the easiest path to take to tax liability settlement. The process can take a long time, compared to some others, and requires a detailed look at a taxpayer’s finances, specifically their financial hardship and expected future income. However, if the IRS will accept the offer, it’s often worth it for the incredible discount provided through this method of resolution. The discount includes a reduced monthly payment plan for the years ahead, one that fits within their reasonable collection potential and their monthly income. Depending on your financial condition, you may not have to pay an application fee to the IRS. The tax agency does take into account basic living expenses to calculate what period payments they’ll accept in their installment agreement. Your entire financial situation comes to bear when it comes to an offer in compromise application.
That’s why hiring tax professionals who know how to negotiate installment plans with tax agencies, like those at Community Tax, is the most effective way to increase your chances of Offer in Compromise acceptance. The Internal Revenue Service allows for three main types of offers in compromise:
- Doubt as to Collectibility
- Doubt as to Liability
- Effective Tax Administration
Each pathway assesses your monthly income, a reasonable period to pay off your tax liability, and even future expenses that could affect your basic living expenses. Negotiating an OIC can help avoid collection activity and can be challenging, but there are acceptance rates for each route.
Tax experts will tell you that offer in compromise success stories are often as unique as the exceptional circumstances that can lead to outstanding tax liability.
Offer In Compromise Success Stories: Paying Tax Issues for Pennies on the Dollar
Recently, Community Tax worked with 10 clients to reduce a total of over $1,000,000 in tax dues to less than $100,000.
These 10 people saved over $900,000 thanks to their partnership with our hardworking tax negotiators, case processors, case managers and other resolution experts. It goes beyond simply filling out Form 656-B with all the correct information and making a good guess at your periodic payments. They understand how to negotiate appeal rights, find the right types of offers for changed circumstances and how to halt any collection actions due to federal tax liens.
The table on display here outlines the details of each client’s case. The columns show the agency the individual owed, the amount of their original balance, the Offer in Compromise settlement and the total savings in their case. Their remaining balances will be paid in periodic payments, based on each client’s financial situation.
We’ve also included the names of some of the team members that helped the taxpayers get their resolution approved. We’ve removed our clients’ last names for privacy purposes
| Agency | Tax Balance | Settlement | Savings | Client Name | Practitioner | Case Processor |
|---|---|---|---|---|---|---|
| Federal | $8,829.00 | $500.00 | $8,329.00 | Charles | Irina Cedano | Daniel Verastegui |
| Federal | $243,898.00 | $500.00 | $243,398.00 | Joy | Jeremy Brunner | Emily Brisseau |
| Federal | $29,511.00 | $500.00 | $29,011.00 | Inez | Jeremy Brunner | Angela Davis |
| Federal | $37,578.00 | $1,984.00 | $35,594.00 | Daniel | Jennifer Schaffer | Kevin Karpiel |
| State of Georgia | $133,433.00 | $72,000.00 | $61,433.00 | Charles | Daniel Urban | Daniel Urban |
| Federal | $163,171.00 | $500.00 | $162,671.00 | Jose | Daniel Kattan | Angela Davis |
| Federal | $15,264.00 | $500.00 | $14,764.00 | Francisco | Irina Cedano | Angela Davis |
| Federal | $169,871.00 | $500.00 | $169,371.00 | Steven | Jeremy Brunner | Daniel Kattan |
| Federal | $130,793.00 | $19,206.00 | $111,587.00 | Doina | Robert Kitson | Robert Kitson |
| Federal | $103,788.00 | $500.00 | $103,288.00 | Jose | Marek Grabowski | Daniel Kattan |
| Total | $1,036,136.00 | $96,690.00 | $939,446.00 |
As you can see, the financial statement shows balances that range from approximately $500 to thousands of dollars. For their privacy, we cannot say how many of them are low-income taxpayers, but we can tell you that monthly income is a strong consideration as the IRS determines your reasonable collection potential, ultimately leading to a monthly installment the IRS will accept to resolve their income tax liability.
This agreed upon resolution is a result of many factors, such as finances, that the IRS takes into account. The payments made from Offers in Compromise are mostly done in lump sum payments as part of the installment agreement between the taxpayer and the tax agency. One of the payment options is a lump sum cash offer, but you can count on all your bank accounts and assets being figured into finding the right initial payment.
Once the balance is completely paid, the taxpayer’s only remaining responsibility is to stay compliant with all future tax returns and federal tax deposits for the foreseeable future. They have to file and pay all future tax returns and estimated tax payments by their deadlines. Doing this will prevent any further trouble with their taxes.
What Can Disqualify You From an Accepted Offer in Compromise?
You may get your application sent back if you don’t qualify. The IRS makes it clear that, unless special circumstances call for it, they will return most applications given these conditions:
- Not getting a bill for at least one balance on your application (meaning you do have to have unpaid taxes)
- Falling behind on your federal tax returns
- Forgetting to give the necessary information on your application.
- Getting in an open bankruptcy proceeding
- Canceling paying taxes or not filing tax returns while you wait
- Not making all required estimated tax payments for the current year
- Having your case at the Justice Department
- Not including the application fee, which can be waived for low-income applicants below the poverty guidelines
Your Own Compromise Success Story Is Next, Thanks to the Team at Community Tax
If you’re an individual or business owner without the asset equity or monthly income to pay an outstanding tax liability, you might be a candidate for making an offer in compromise.
No tax liability is easy to get rid of.
Talk to a professional tax relief company first. Trying to tackle a process like the Offer in Compromise can be very difficult to handle alone in a reasonable period of time. You may calculate larger initial payments or more inconvenient periodic payments and will decrease chances of it being accepted by the appropriate tax agency. If you are looking to get rid of your tax dues once and for all, call an expert with the training and experience to help you get the best possible settlement in your case.
The staff of Community Tax works hard to place their clients in a fitting resolution program and sees it through to the end. Make a single phone call today and you could be on the way to federal and state liability freedom!
