Seven Errors to Avoid in the IRS Offer in Compromise Process

While the IRS is more determined than ever toAgreement or Contract for Services indicates
enforce collection activity for back taxes owed,that the fees paid include representing you at
the IRS Offer in Compromise program can helpAppeals, as your OIC has a good chance of being
taxpayers who are experiencing significant financialrejected by the first IRS employee charged with
problems get a fresh start, if they qualify.evaluating it.
However, it is important to note that the IRSTax Relief Deadly Sin #4: Misrepresenting your
Offer in Compromise acceptance rate is less thanfinancial position in any way on any document.
23% (less than one in four will be accepted) whenThe taxpayer bears the burden of proof to show
a taxpayer prepares, submits, and negotiates hisexceptional circumstances exist such that
her offer without professional expertcollection of the full amount of IRS back taxes
representation. On the other hand, hiringwould create economic hardship or where
professional tax help to negotiate a settlementcompelling public policy or equity considerations
with the IRS on your behalf can greatly increaseprovide sufficient basis for compromise.
your chances of qualifying for a tax reliefAttempting to lie, fib, misrepresent, omit,
settlement.equivocate, dissemble, or otherwise tell them an
An experienced tax attorney or Certified Taxuntruth will not win you an Offer in Compromise
Resolution Specialist (which can only be anand may even land you bigger trouble than when
attorney, CPA or Enrolled Agent) can help youyou started the process. All documents you sign
qualify for this program by analyzing your currentare signed "under penalty of perjury."
financial situation.Tax Relief Deadly Sin #5: Failing to meet a
While taxpayers may always representdeadline the IRS or a tax attorney or Certified
themselves before the IRS, many taxpayers findTax Resolution Specialist gives you.
dealing with the IRS frustrating, time-consuming,If the IRS - or your tax attorney or Certified
intimidating or all of the above. Whether you hireTax Resolution Specialist - gives you a deadline,
professional tax help or go up against the IRS onyou need to honor it. Give yourself a cushion of
your own, check out these Seven Deadly Sins oftime to find that old bank statement or fill out
Tax Relief that you will want to avoid whenthat tax help form. You don't want to have to
applying for an Offer in Compromise.drive 50 miles with a sick kid in the back of your
Tax Relief Deadly Sin #1: Failing to file a taxcar to make the midnight FedEx deadline in the
return when due, without extensions, during thenearest big city.
offer process.Tax Relief Deadly Sin #6: Misleading or deceitful
The IRS does not make a habit of bailing peoplestatements, material omissions and non-disclosure
out with tax relief for back taxes owed. Theyto anyone at the IRS in verbal, written, electronic,
want you to know that this is a one-timeor any other format.
aberration on your part and that for the rest ofAgain, if you don't play by their rules, they won't
your life you will file and pay your taxes on time.play tax relief ball with you at all. Don't fool
In order to help convince them of your goodyourself by thinking your rolled up stack of Ben
intentions, it is crucial to file all subsequent taxFranklins is safely tucked away in an old coffee
returns on time.can at the back of the garage or in a numbered
Tax Relief Deadly Sin #2: Failing to pay any taxesSwiss account. The IRS already knows every
when due during or after submission of yourmoney-hiding trick in the book, and they will
offer.uncover all of your financial secrets.
See Deadly Sin #1. The IRS won't take youTax Relief Deadly Sin #7: Refusing, declining,
seriously if you flake on payments during theavoiding requests for information or documents.
Offer in Compromise process. If you are seriousThey're going to find out all of your back tax
about resolving your tax debt, you need to showsecrets anyway, so you might as well be upfront
that you will fully comply with the tax lawsabout them. Better to rip off a bandage quickly,
without further delinquencies.as it were, and start the process of resolving
It is also important to note that the IRS requiresyour tax problems once and for all.
future compliance for a period of five (5) yearsThere are all kinds of complications to getting a
from the date of acceptance of the Offer Insuccessful offer accepted at a low dollar amount,
Compromise, or until the offered amount is paid inand a tax attorney or Certified Tax Resolution
full, whichever is longer. Compliance is the timelySpecialist handles all aspects of the process, so
filing and paying of all required returns and taxesyou don't have to. In addition to navigating the
when due.IRS process to resolve your back taxes, a tax
Tax Relief Deadly Sin #3: Hostility toward anyoneattorney or Certified Tax Resolution Specialist will
at the IRS.look for ways to legitimately further reduce your
Remember that old saying, "You catch more fliestax debt so you aren't obligating yourself to pay a
with honey than with vinegar?" No one likes apenny more than you have to.
sycophant, but treating any IRS employees youWhen you hire a tax attorney or Certified Tax
encounter with courtesy and respect will helpResolution Specialist to get IRS tax relief, you
keep your back tax relief process movingimmediately relieve yourself of the stress of ever
smoothly.having to talk to the IRS again. You also deprive
Your experience will not be with the IRS per se.them of one of their biggest weapons. The IRS
Your experience will be with an individual who mayloves it when they get to talk directly to the
like or hate giving taxpayers deals. We see thistaxpayer. The IRS wants to get the maximum
behavior every day. Remember, you can't pickpayment for back taxes out of you, and will not
who you want to evaluate and handle your offer;treat you as fairly as they will if you have the
it is simply the luck of the draw. So it's best toprotective shield of a professional tax attorney or
keep your cool during the process.Certified Tax Resolution Specialist representing
And if you are represented by a tax problemyou.
resolution specialist, make certain that the Service