Case 1: Offer in Compromise for $100.00 on $11,675.00 in debt

Tax debt of $11,675.00 resolved with Currently Not Collectible status followed with an Offer In Compromise of $100.00

SITUATION:

A Client called in with a total liability of about $14K, client was in an installment agreement when he enrolled in the program. The reason the client owed the IRS was due to a mistake on claiming when he wasn’t entitled to.An individual reached out to us with tax debt of $11,675.00 owed to the IRS. This person thought that the debt was due to a withdraw he made from his individual retirement account (IRA) in 2016. The client told us he was very worried because he didn’t have the funds to pay the IRS.

INVESTIGATION PHASE:

Our tax team started to work on his case and the first step was to confirm that the total amount of taxes owed was correct. This amount also included penalties and interest. Our enrolled agent also confirmed that there were no missing tax returns to file. There were no liens, levies or garnishment threats. Our enrolled agent reviewed this person’s financial situation and learned he was a good candidate for a Currently Not Collectible status. During a Currently Not Collectible status, the IRS generally will not collect unless the client’s financial situation improves or when the statute of limitation expires. The statute of limitation expiration date depends on each client’s case. The Currently Not Collectible status request was sent to the IRS and approved.

RESOLUTION PHASE:

Our enrolled agent continued to work towards a resolution and suggested that we submit an Offer In Compromise on client’s behalf. An Offer In Compromise means that the IRS would accept a very small portion of the tax debt and forgive the rest of the amount. In this case, the OIC offer was for only $100.00.

Our tax team collected all documents such as proof of income, personal expenses, utility bills, bank statements, and these were sent to the IRS along with the Offer In Compromise submission. The IRS forwarded the request to an IRS manager who verified the client’s financial situation. The Offer In Compromise for $100.00 was accepted to settle the debt. Client’s tax issue was successfully resolved.

OIC was applied for and accepted with the IRS as follows:

Total amount owed: $11,675.00
Resolution: Offer In Compromise
One time Payment: $100.00
Phases worked: Currently Not Collectible / Offer in Compromise

More Tax Debt Relief Issues & Solutions.

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.

 

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