Offer in Compromise Help: Get a Better Chance of an Acceptance
It can be very difficult to submit an Offer in Compromise, and unfortunately, the IRS and states reject the majority of requests. To improve your chances, you may want to get help from a tax professional. Offer in compromise help can be provided by a tax firm, or a licensed tax professional such as an Enrolled Agent, Tax Attorney, or CPA.
Professionals ensure you are qualified and eligible to submit an Offer in Compromise. Calculating an appropriate offer amount to make to the IRS is difficult. Your offer amount needs to be equal to or greater than your reasonable collection potential (RCP). The RCP is how the IRS measures the collectibility of taxpayers. The RCP is the realized value of your assets, plus future income minus amounts permitted for basic living expenses.
If are you a great candidate, they prepare the required documents, and they ensure that you submit everything correctly. Furthermore, they negotiate a settlement that works for your budget. If applicable, they show the IRS or State that liquidating your assets to pay would create an undue hardship.
How Does It Work?
Here is an overview of the general process when you get experts to help.
- Most pros will offer a free consultation or low-cost consultation whereby a tax professional or representative will ask you questions regarding your income, assets, liabilities, and expenses.
- Next, a tax professional will determine if you are a good candidate for the Offer in Compromise program.
- If the Offer in Compromise isn’t likely to be accepted, the tax pro will present you with other advantageous options.
- If you decide to move forward with an option (again no obligation to continue after the consultation), you will sign a limited power of attorney form. This gives your tax professional authority to talk with the tax agency in question. At this point, the IRS directs all communication to the tax professional. You no longer get annoying phone calls or letters.
- The tax professional prepares all the necessary paperwork, and will generally ask for 3 to 6 months of bank statements and other documents if you are applying for an Offer in Compromise.
Seeking a professional for help with an Offer in Compromise is generally a good idea. The way your financial information is presented directly impacts your eligibility for a settlement. Tax professionals ensure your information is presented in the most accurate way possible. Starch a search below, then use the filters and select "offer in compromise" to filter for tax professionals that have offer in compromise experience. At TaxCure, we have a marketplace of tax professionals and you can find the tax professionals with the exact experience you need.