Offer In Compromise Washington DC
Our company record of accepted offers is far above the standard ratio of the nationwide submittals. While there is no perfect record for the approval of this specialized tax matter, BFS is extremely happy with its success rate. We believe that this is because we only accept cases where we have a greater chance of the Offer being accepted, whether the client is located in Rockville, Frederick, Montgomery County, Washington DC, or throughout the U.S.
Some taxpayers can qualify for a settlement with the IRS, in which they pay less than the original tax liabilities, to resolve their tax liability with the IRS. There are three reasons to file an OIC. The first is when there is doubt as to your liability. You believe the IRS liability is not valid and feel that the IRS will have difficulty proving it.
The second is when there is doubt as to your ability to pay the taxes owed under your current circumstances. Most offers are filed under this section. The third is where taking your assets will create an undue hardship. A review of the facts of your case is needed to determine if you qualify under one of the reasons to file an OIC. Not everyone will qualify and it is a waste of your time and money to file an offer in compromise if you do not really qualify.
Business & Financial Solutions will not file an OIC for a client, in most cases, unless we believe there is at least a 90% chance of it being accepted. There are many companies who will guarantee that they can get you an Offer In compromise if you pay them their fee. Unfortunately, the client finds out later that they never qualified for an Offer In Compromise in the first place. Let BFS review the facts in your case and we will give you a realistic appraisal of your chances of qualifying for an Offer in Compromise in Washington DC.
How It Works
The IRS sets guidelines for accepting an Offer in Compromise to settle a past debt. The IRS looks at a taxpayer’s past, current, and future financial situation when evaluating whether an OIC should be accepted. It is important to know what aspects of a taxpayer’s situation. As the IRS is looking at the whole picture when considering an Offer in Compromise.
Not everyone qualifies for a settlement through the IRS. Each person’s financial situation is different. Additionally, the length of time varies. But the average generally is 8 to 12 months. Thus, pre-qualifying is an important first step to take prior to attempting an Offer in Compromise with the IRS.
The IRS will accept an Offer in Compromise based upon “reasonable collection potential.” Meaning what they reasonably expect they can collect from you within the remaining statute of limitations on your debt. The goal of any Offer in Compromise negotiation is to convince the IRS that this number is as small as possible. And this is something our Enrolled Agents are proficient in doing.
The IRS evaluates reasonable collection potential on a debt. The evaluation of the debts determines their willingness to accept an OIC. It is largely based upon a complete review of your financial situation. And this includes income, expenses, assets, and liabilities.
The IRS will only accept an Offer in Compromise if you can prove to them. Through full disclosure, you will have to show that you will never be able to pay the debt in full. Beware of companies promising a “pennies on the dollar” settlement for past debts. The Offer in Compromise is not for everyone. And many requirements must be met before the IRS accepts the tax debt settlement.