Two Recent Offer in Compromise Victories
Porter Law Office LLC recently helped secure an approved IRS offer in compromise for two clients. Both offers required proper understanding of the IRS’s reasonable collection potential (RCP) as the means to settle a tax liability.
An offer in compromise, or OIC, allows you to settle a federal liability with the Internal Revenue Service for less than the full amount you owe. Contact Columbus, Ohio tax lawyer Matthew R. Porter, Esq. LL.M. for a free evaluation of your eligibility to resolve your debt under an IRS offer in compromise.
An offer in compromise is a fact-specific application. Therefore, the facts and results of each case will vary. We cannot guarantee any particular result from our legal representation of any taxpayer before the IRS.
Taxpayer 1—$1,200 to Settle a Tax Liability of $51,000
In the first case, the IRS accepted $1,200 to settle a tax debt of more than $51,000. The approved offer was a lump sum cash offer based on doubt as to collectibility (see IRM 5.8.4.3). During negotiations with the IRS Officer Examiner, our office had to verify the taxpayer’s income and assets.
The taxpayer also had a non-liable spouse whose assets and income needed to be verified. Our office calculated the appropriate proportionate share of the total household income and expenses for the taxpayer. The IRS agreed with the calculation and after several telephone conference calls with the IRS, the Officer Examiner determined that our offer was acceptable because equal or exceeded the reasonable collection potential for the taxpayer.
Taxpayer 2—$12,000 to Settle a Tax Liability of $186,000
In the second case, the taxpayer initially contacted our office to file past due tax returns. The taxpayer had been self-employed for many years and had unforeseen circumstances that reasonably prevented the filing of tax returns. Thus, we processed a domestic voluntary disclosure for the taxpayer. The IRS accepted the returns and assessed tax liabilities for each year, which cumulatively exceeded $186,000.
Next, our office processed a lump sum cash offer based on doubt as to collectibility (see IRM 5.8.4.3). The IRS ultimately accepted around $12,000 to settle the tax debt of more than $186,000. It took several conference calls with the IRS Officer Examiner and we had to provide in depth supporting documentation to finally obtain an approved offer in compromise for the taxpayer. The main issue in this case was the taxpayer’s income. The verification of income is often the most critical aspect of an OIC especially when the taxpayer is self-employed.
Contact an Experienced Ohio Tax Attorney
Offer in Compromise Representation | Columbus Tax Lawyer
If you owe the IRS a tax debt, contact the experienced tax lawyer at Porter Law Office, LLC to discuss your eligibility under the IRS’s offer in compromise program. Some tax debt relief companies will make promises that are simply not true. Columbus, Ohio tax attorney Matthew R. Porter, Esq. LL.M. understands that not everyone qualifies for an offer in compromise. By analyzing your reasonable collection potential, Mr. Porter will be able to determine your eligibility to settle a tax liability with the IRS. Contact the experienced Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a free consultation to discuss your particular IRS tax needs and options to file for an offer in compromise.