Case 8: Offer In Compromise Example

Offer In Compromise Example

SITUATION:

A woman called in stating that she had about $24K of debt owed to the IRS. She explained that the liability stemmed from issues dating back to 2006. She has 2 children and she had applied for the Child Tax Credit, but was denied by the IRS. She had filed her taxes on her own. Her financial situation was very tight and she needed a solution to resolve the IRS tax debt and to have peace of mind.

INVESTIGATION PHASE:

A power of attorney was completed and contact was made by our tax professional with the IRS to discuss the account and request an immediate stay of enforcement. Master tax files and tax transcripts were pulled. The client’s financials were gathered and organized into the proper forms. Bank statements, letters, correspondence, and other pertinent information were reviewed and analyzed.

It was determined that the total amount of tax debt which was being collected on was $15,611.34. The amount was less than she thought because her tax refund was applied to the amount owed. Our tax professional reviewed the client’s financial position, transcripts, history, her unique situation, and recommended that the best possible option, based on the client’s financial situation, would be an Offer In Compromise of $1.00 to resolve the IRS tax debt. Based on the client’s financial standing as provided, it was recommended that the client pursue an Offer in Compromise. This was primarily because of her inability to pay the balance or make payments on the tax account.

RESOLUTION PHASE:

During the collection hold period, the client decided to proceed with the Resolution Phase of the program. The tax professional contacted the IRS to apply for the OIC.

Total amount owed: $15,611.34
Resolution: Offer In Compromise
One time Payment: $1.00
Phases worked: Investigation 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.