An offer in compromise is an agreement to settle debt between the IRS and a taxpayer who has no way of paying his / her prior taxes. If the IRS accepts the offer in compromise, the taxpayer will be relieved of any tax debt he / she may owe.
The IRS will accept an offer in compromise if there is doubt he / she can pay what is owed. Occasionally, an offer in compromise will be accepted if a taxpayer proves the tax would create an economic hardship. The taxpayer must file and pay taxes for the five-year period after his / her offer is accepted, or he / she will again be responsible for all the prior taxes and penalties.
The Internal Revenue Service has released a new edition of the Offer in Compromise, in May 2012, as well as an update to the Internal Revenue Manual regarding Financial Analysis of Offer in Compromise cases. The Internal Revenue Service announcement is more flexible and is designed to help a greater number of struggling taxpayers make a fresh start.
Monahan Tax & Accounting will meet with you and review your specific situation. We’ll take the time to carefully analyze your tax obligations vs. your true ability to pay those obligations.
Don’t listen to vague promises of help in exchange for a significant payment. You’ve heard all that on TV commercials and you’ve seen it on the internet, but you pay a high price before you even know your chances of success. At Monahan Tax & Accounting, for a reasonable fee, we’ll analyze your own unique situation with you and we’ll present you with a detailed plan of action before you commit to paying a large sum to a third party in anticipation of a hopeful but far from certain outcome.
Following our detailed analysis, we’ll work with you to bring about the best possible resolution for you and your family. You’ll be better educated as it relates to how the “system” works for you and against you. Call Monahan Tax & Accounting today!