We recently received news of an Offer In Compromise and its recommended acceptance in the amount of $600.00. This is a very rare case.
Now, let me tell you about the negotiation work that went into this Offer In Compromise. It was not as easy as simply submitting his financial statement and wishing and hoping for acceptance. We went through a lot of work to get the client where he is today with his IRS and State of NM situation.
Mr. Sykes has been a client since I have worked with Quantum Financial Solutions. He works for an auto detailing business out of New Mexico. We filed an Offer for this gentleman about 1 year ago. We had a recommendation for acceptance at the time for about $10,000.00. Unfortunately, his 2004 return was audited thus resulting in the return of his Offer In Compromise. We had to wait out the audit and submission of an amended return before re-filing for another OIC.
Back to the drawing board.
In between the audit of his return and the denial of our first OIC, we set up a small payment plan for the State of New Mexico in the amount of $100.00 per month. This is considered a partial payment plan and I will explain how this strategy works in another post. Now, on to the Offer.
Finally, after resubmitting the new OIC, we received correspondence back asking about his involvement in Dent Express, LLC. He used to be a managing member but has since passed on his interest to his partner. We explained the issues at hand to the OIC specialist and submitted all the necessary documentation she had asked for concerning the business.
On Friday, April 10th, we received verification of her recommended acceptance. Mr. Sykes owes the IRS $327,000.00. He fits into a category all on his own. It's not just pennies on the dollar, its fractions of pennies on the dollar. Mr. Sykes and myself are keeping our fingers crossed this time.
We will be following up with the IRS recommendation and release of liens in the next 30 days. I anticipate Mr. Sykes being listed as a reference in the near future.