Offers in Compromise & Foreign Account Issues

Offers-in- Compromise (Personal)

Offer in Compromise is the government’s “Let’s Make A Deal” program that allows you to pay an amount you can afford to satisfy your entire tax liability. It even includes the penalties and interest. Yes, the amount you pay is based on what you can afford, not the amount you owe! The program allows an eligible taxpayer to pay what they can afford to pay regardless of the amount they owe.

The OIC is the essence of fresh start; once an offer is accepted and paid the taxpayer is then current with all their tax liabilities. We are able to determine your eligibility for the Offer program and advise you on how to become qualified when appropriate.

The IRS Code states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…” (Internal Revenue Code §7122).

It is possible to eliminate all the taxes you owe – including all penalties and interest – at an enormous discount. There is no minimum that the IRS may accept to settle your debt especially if your offer is done “right.” If you qualify, your debt will be settled for a fraction of what you owe. Planning is often the key to qualifying and securing the lowest Offer the IRS will accept. As Certified Tax Resolution Specialists, we are uniquely qualified to assist you in preparing an acceptable Offer.

In-Business Offer in Compromise

In certain cases, the IRS allows companies to submit an offer in compromise while remaining in business.  In order to qualify for this type of offer, the business needs to show that they will be unable to pay their liability due to an outlying circumstance such as the death of a partner or a natural disaster.  Reasons such as these indicate that the business will not be restricted from paying their taxes going forward.  Explaining to the IRS that the company experienced a “slow” period will not suffice as reason to request a compromise.

If you believe your business qualifies for an in-business offer in compromise, contact us to discuss the details.  If for any reason your business will not qualify, that does not mean that we cannot address your tax issues in another way including an individual offer in compromise.

Foreign Bank Account Issues

Under Bank Secrecy Act amended by USA Patriot Act, issued after 9/11/2001, the Internal Revenue Service has commenced aggressive enforcement in the area of foreign bank account reporting. Amnesty programs allow taxpayers to become compliant in reporting and paying the tax due. The programs afford taxpayers an opportunity to avoid criminal prosecution. However, the tax cost is burdensome and the rules are complex. This has resulted in confusion and uncertainty for many taxpayers with foreign accounts. Professional representation is highly recommended in this area.