subject: IRS Offer in Compromise Settle For "Pennies on the Dollar"? [print this page] IRS Offer in Compromise Settle For "Pennies on the Dollar"?
I personally hate the sales pitch "Settle for pennies on the dollar" when it comes to the IRS Offer in Compromise program. The IRS is also recommended caution when you see this phrase.
Not that it completely wrong. I mean, you can actually settle back taxes with the IRS for a small fraction of what you owe if you qualify!
The results can be astonishing. My company recently completed an offer in compromise ( "OIC") applies to a customer who owed$ 79,000.00 in back taxes for (wait for it )$ 9th Yes, you read that correctly. Nine bucks!
Now, a record for our company, and we've been doing this for years with over 10,000 customers in our database. Does this mean that every single customer of us settle for $ 9,? No way. But you see, how can a true story may be misleading about the settlement with the IRS. Many of these "pennies on the dollar" companies you will believe that you will settle for $ 9 even if you hired them. ThusCaution!
Thus it is possible, "Settle for pennies on the dollar?" It is certainly possible. I think I would more than likely to find opportunity if it were up to me. If it is probable (ie, you qualify for an OIC), then there is the question of how many cents on the dollar, you will be billing for? You can settle for 97% of the tax liability (3% savings) and an unethical business tax can still say that they opted for "pennies on the dollar." But I bet you did not expect tosettle for 97 cents on the dollar. Were you?
My point is, you have to go through a very thorough investigation phase, before they are unsure what options to put an offer in question, or no tax can not know the resolution path for that matter. This phase lasts about 21 to 30 days. Its purpose is, through each of IRS records and document management, and take your information and analyze evidence and the actual legal options you have.
Every lawyer worthhis fee request that you go through this phase, because it is the only way he or she really can not guarantee the exact resolution for you and your situation.
So if you're looking to really resolve your tax situation, and want more than just "pennies on the dollar," promises of the so-called "tax experts" to make sure they under Phase One of its investigation process. If they do not know what you're talking about, or say that you do not need RUN FAST!
Make sure that youexperienced representation when you pay good money to be resolved your IRS situation. In another article I will go step-by-step through the OIC process, so you can see if there something you want to tackle on their own.
