Case 7: Offer in Compromise for $50.00 on $103,836.70 in debt
Offer in Compromise for $50.00 on $103,836.70 in debt
SITUATION:
A taxpayer contacted us with an Internal Revenue Services (IRS) debt of approximately $90,000.00. In the initial consultation she informed us there were unfiled taxes for year 2007. She was unable to file due to a divorce, and consequently her wages were being garnished.
We proceeded with the Investigation Phase of the program and after a thorough study was completed by our tax team, it was determined that the total amount of tax debt totaled $103,836.70.
INVESTIGATION PHASE:
Our tax team contacted the IRS with the signed Power of Attorney. Once the POA was posted, we requested a master file for the taxpayer including the transcripts and a Stay of Enforcement was approved for 30 days. A Stay of Enforcement halts the collection process for the approved amount of time. During the investigation our tax team found out the taxpayer did not file returns for tax years 2008 – 2011, 2013 and 2014. These years needed to be filed before a resolution is worked out.
COMPLIANCE PHASE:
During this phase we filed the mentioned years. Given taxpayers hardship and after we completed taxpayer’s financial analysis, the tax team recommended placing the account on Currently Not Collectible status and then pursuing an Offer in Compromise (OIC) to completely resolve the tax liability based on the client’s financial situation. Once financials were reviewed, it was perceived that the client was negative $1,246.00 every month and due to this unable to afford payments. While the account is in CNC status, the IRS will not generally engage in collection activity and as long as taxpayer’s financial situation remains the same he won’t have to proceed with monthly payments. When the CNC status was approved we would work out an OIC.
RESOLUTION PHASE:
Our Tax Professional contacted IRS with the client’s financial information. Upon review, the account was placed in Currently Not Collectible to stop any collection action against the client. Due to the client’s circumstances and financial hardship an Offer In Compromise was submitted. An OIC is when the IRS accepts a settlement for less than the full amount owed. Our tax team submitted an offer for $50.00. The taxpayer’s case was being handled by a revenue officer. After sorted phone calls and proof sent, the offer was approved.
OIC was applied for and accepted with the IRS as follows:
Total amount owed: $103,836.70
Resolution: Offer In Compromise
One time Payment: $50.00
Phases worked: Investigation, Compliance, and Resolution
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DISCLAIMER:
This example is an actual example of a client who enrolled in the tax program. Every case is unique and this is not an extension that you will receive the same resolution as they will. Your situation is unique, as are all tax cases. The team has extensive experience, has former IRS employees, special officers, enrolled agents, tax attorney, and CPA’s. Our tax team will work diligently with a flat fee to solve the tax issue you have for the best possible resolution for you. That means doing all possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.