Had a nice win on an innocent spouse claim this week.

Look for an upcoming article on innocent spouse defense in the 5th circuit.

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Why an Offer-in-Compromise is More of an Art Form Than a Fill in the Blank Form

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  Fairly soon taxpayers will begin receiving IRS collection notices after several years of hiatus during the COVID outbreak. For more information of this development check out this link.      This will trigger the flood of national Offer-in-Compromise mills to put out their “settle your tax debt for pennies on the dollar” and “The IRS writes off millions of tax debt each year”. Both true statements but read the fine print. You must qualify. Ahh, and therein lies the rub. How do I qualify and keep my country club membership, my Tesla lease and shopping at Whole Foods? The short answer is you can’t. Pro Tip - For more information on What is an Offer in Compromise, check out my web page on this subject.   But what about those taxpayers in the middle – who have legitimate, OIC worthy tax situations? How do they communicate that to the OIC processor? Enter the tax artist.   Form 433A is a complete, in your face, disclosure of your entire financial ...
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Unlocking the Secrets of an Offer in Compromise: A Comprehensive Guide Chapter 3 - How Much Do I Offer?

  Calculating the Amount of your Offer in Compromise – What is Your Reasonable Collection Potential (RCP)? Drum roll please! This is what you’ve been searching for – how much do I offer? How little can I get away with? Why not low ball them?   Here are the two most important concepts to understand before you start your OIC.   Key Point 1 - You’re not buying a car or a house. The Settlement Agent does not work on commission. They don’t have to settle and the decision to settle rests entirely with the Settlement Officer. Any offer or counter-offer you make has to be backed up by the numbers.   Key Point 2 – Determine your Reasonable Collection Potential before making an offer. Reasonable Collection Potential (RCP) is a key factor considered by the IRS when evaluating an Offer in Compromise (OIC). RCP refers to the amount of money the IRS believes it can collect from a taxpayer based on their assets, income, and future earning potential.   The IRS...
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Unlocking the Secrets of an Offer in Compromise: A Comprehensive Guide - Chapter 1

  This is the first in a series of posts I’ll have on an IRS Offer in Compromise. Through this series I expect answer all of your basic questions, and a few out of the box specific question. If you have a specific question, you would like addressed, please drop me a line or post a comment.   With that introduction lets get started learning about Offers in Compromise and increasing your chance of qualifying for an OIC.   An Offer in Compromise (OIC) is a tax resolution option offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. The purpose of an OIC is to provide a way for taxpayers who are struggling financially to resolve their tax debt in a manner that is fair to both the taxpayer and the government. The IRS will consider an OIC when it is unlikely that the tax debt can be paid in full and the taxpayer's assets and income are not sufficient to fully pay the debt. An OIC can also be considered when the taxpayer has a ...
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