Offer In Compromise

by Louis Meeks on January 3, 2015 in Blog


Victory Tax Solutions, LLC

“America’s Trusted Tax Team”

An offer in compromise is a very advantageous hardship program that the IRS offers to certain taxpayers.  The taxpayer offers a fraction of what they owe to the IRS, typically 10-50% of the liability.

When individuals attempt an Offer In Compromise by themselves, the success rate averages 20%.

At Victory Tax Solutions, when our clients follow our recommendations and we prepare the offer, our clients’ acceptance rate exceeds 90%!

Our success rate is largely based on our screening process.  Any number of tax resolution companies will tell you they will “submit” an offer.  Whether that offer is likely to be accepted is a totally different situation.  The IRS has standards that must be met in order for the taxpayer to be considered a viable candidate.  Our tax attorneys are well versed and very experienced on the nuances the IRS uses to determine viability of an offer.  Nothing is more frustrating than making an offer, waiting six to twelve months, then having it rejected.

The IRS time frame for acceptance or rejection is approximately 6-12 months.  The good news is… While the offer is being considered, all collection activity is put on pause. The even better news is…. No wage garnishments or tax levies.

The following are a few of the criteria and success factors the IRS uses in analyzing Offer in Compromise applications:

  • One determining factor for success is tax compliance.  This means the taxpayer must be current on their tax filings, even if they owe back taxes.  The older the tax liability, the more likely it is to be considered.
  • The second factor is age of the tax payer.  The IRS wants to see the likelihood of the entire debt being paid within a certain amount of time. So in reality, the older you are, the better.
  • The third factor is related to the financial situation of the taxpayer.  This includes assets, liabilities, income and expenses.  A full disclosure of your finances must be included.  The IRS does a search for your bank accounts and assets, so being honest is crucial.  They will find out if you are trying to hide money and assets.
  • The fourth factor is education, training, and occupation.
  • Lastly, the IRS is extremely particular about how the offer is presented.  It must be very well organized and in a certain format.

The Victory Tax Solutions team is led by Senior Tax Attorneys, CPA’s and paralegals.  We have a great combination of law school education, knowledge of the tax laws, experience working with the IRS and always working to get the best possible outcome for our clients.

If you are interested in learning more about Offer in Compromise or any other IRS or state resolution, please call Victory Tax Solutions today for a free consultation with one of our Senior Account Executives.  We would love to help you.  Our toll free number is 877-772-0123.

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