Is the IRS Still Accepting Offers in Compromise?

Yes, but…  The bad news is that over the last two decades the numbers of offers being accepted has been in decline.  The good news is that a higher percentage of offers applied for are being accepted.  Why?  Many tax payers and companies representing tax payers filed offers that were outside of the rules.  Most of the companies filing frivolous offers have gone out of business and left their clients stranded and in much deeper trouble with the IRS.  Avoid companies outside of your area that you cannot meet face to face.  They make promises they cannot keep.  Avoid being taken because they tell you what you want to hear.  The following is an action list that must be kept to get acceptance of your offer:

• Make sure you can file and pay on time.  This means having enough withholdings if you are an employee or making estimated tax payments.  Prepare your return in February to give you time to come up with any amount due by April 15 and avoid filing extensions.  All past returns must be filed to be included in the offer.
• Consider using a Mesa AZ tax professional to help you through the paperwork maze.  Even small errors will cost you big time—by having your offer rejected or having the IRS counter your offer with a much higher amount to pay.  The IRS will require proof of all expense tems included in your financial statements.
• Consider all of your settlement options before filing an Offer.  Many times the best settlement option is not an Offer.  This is another reason to have a tax professional in Mesa AZ on your side.
• When the IRS requests additional information, respond promptly.  Any delay will increase the chances that your offer will be rejected, lost or transferred to another IRS employee.

Tax Debt Advisors, Inc of Mesa Arizona offers a free initial consultation to discuss your potential Offer in Compromise or other tax matters.