Debt Relief Companies » IRS Offer In Compromise

Who Provides Offer in Compromise Help?

Scott — Thu, 17 May 2007 18:38:33 +0000

When seeking assistance in determining if an offer in compromise may be available to you as an IRS tax debt relief solution, be careful that you seek the best help. In general, their are several types of people who can provide this service like lawyers, accountants, and federally licensed agents.

I recommend you work with someone who does nothing but provide tax debt relief solutions, including offer in compromise help, to their clients because they are the true experts who have thorough knowledge of all the angles and they are in contact with the IRS every day. Often accountants and lawyers will provide the service but do not have many clients who use them for it as it’s often only a small part of their overall practice.

So when you look for assistance from people who do nothing but tax relief work, there are typically 2 types of operations you will find:

1. The large tax relief companies
2. The independent licensed agents

The large tax relief companies typically are staffed with salespeople who bring the business in and then the tax experts are behind the scenes working on dozens of accounts simultaneously. On the other hand, if you prefer to deal directly with an expert rather than a large customer service department, you may want to consider an independent licensed agent. That way you speak directly with the person who is talking to the IRS for you and you can always know exactly what your situation is.

If this sounds like a better potential solution for you, I can refer you to a professional licensed agent who can answer your questions, provide advice, and let you know if your situation qualifies for their IRS tax debt relief program.

Why Would the IRS Offer Compromise?

Scott — Thu, 17 May 2007 18:11:04 +0000

The IRS offers a tax compromise in certain situations because they know it is their only option. If you prove to them you cannot pay them your tax, they are willing to take what you can afford vs. their alternatives of:

1. Never getting anything from you
2. Spending valuable time and resources chasing after every penny you make for years to come

They have bigger fish to fry. The IRS has a job to do – collect as much money as is owed to them by law. They know they are better off chasing the multimillionaires who try and dodge their tax bill through financial schemes or those who say they cannot pay despite their luxurious lifestyles.

If you really do not have the money and you can prove that to them, they will often take what they can get and release you from having to pay the remainder. Of course, their are no guarantees they will accept a tax compromise, but it does happen a lot.

To see if you qualify,contact a licensed expert who can review your case and provide you a free consultation.

What is an Offer in Compromise?

Scott — Thu, 17 May 2007 17:51:07 +0000

The IRS can grant an offer in compromise to people who owe large amounts of federal taxes that they have no way of paying. It is a solution to the debtor that reduces the total tax bill by a potentially huge amount, sometimes for pennies on the dollar.

It is basically a settlement negotiation just like a debt settlement company would do with unsecured debts like credit cards. The difference is that an offer in compromise must be done by a lawyer, accountant, or an agent who is licensed to directly negotiate an IRS compromise on a client’s behalf.

Most people who are granted a reduced tax bill through this system have proven to the IRS that they have no means to pay the debt. The situation usually involves a failed business venture, long term medical illness, or some other drastic life changing event that has caused the tax bill to grow beyond reason.