We all have a responsibility to pay our taxes each year. But what happens when the amount you owe has spiraled out of control?
Some taxpayers who come to us seeking an IRS tax settlement also owe state income taxes. Each state has its own rules and regulations to resolve back taxes. For those taxpayers who have Georgia tax problems, you should know that Georgia has an Offer-in-Compromise (‘OIC”) Program that allows you to reach a tax settlement for an amount less than what you owe.
This is the final blog in our three part series discussing common mistakes made when submitting an Offer-in-Compromise. Retaining the services of a qualified tax resolution professional will help you avoid these errors.
In our previous blog we discussed the mistake of not considering the remaining statute of limitations on collections before filing your Offer-in-Compromise. Here we discuss mistakes made in calculating a taxpayer’s future income which is used in determining your Offer amount.
In May of 2012, the IRS expanded its Fresh Start Initiative with the goal of making it easier for delinquent taxpayers to reach an Offer in Compromise (OIC) and repay tax debt.
The IRS Offer in Compromise program allows qualified taxpayers an opportunity to settle their back tax debt for less than what is owed. When you submit an Offer in Compromise you are agreeing to comply with certain terms and conditions.
We recently submitted an Offer in compromise for a Boca Raton taxpayer and were able to settle his back taxes of $165,000 for only $13,200, a savings of 92%.
In my blog of February 17, 2014 I discussed the case of a West Palm Beach couple who prepared and submitted an offer in compromise that was rejected by the IRS.
Last week I met with a married couple from West Palm Beach that prepared and submitted an offer in compromise in an attempt to settle IRS back taxes for the 2008-2010 tax years.