How did we get to the point of settling you ask? Very detailed layout, structure, preparation and follow up. The steps below outline the brief but detailed process behind filing an Offer In Compromise:
- First and foremost conduct a compliance check to insure all tax returns are on record, find out all balance dues you will be compromising and ensure the taxpayer is compliant with estimated tax deposits. Make sure you get a collection hold to obtain enough time to file the Offer in Compromise.
- Secondly, once the compliance check has been completed, fill out form the applicable financial form (business and/or personal) as well as the Offer in Compromise form. All attachments relative to the form must be furnished. Do not leave anything off the forms no matter how large or small financially.
- Third, don't forget about the fee, the 20% down payment, or down payment and monthly payments thereafter depending on the Offer in Compromise. The taxpayer may not have to furnish a fee or down payment based on their financial condition.
- Forth step, contact the IRS and advise them you are filing the Offer In Compromise prior to the due date initiated in step one. Once filed, get the appropriate follow up to make sure the IRS has the Offer In Compromise in their system and has designated your case as such.
- Final step, negotiate the offer. Almost 90% of all Offers come back rejected, returned, or are declined for one reason or another. The IRS doesn't give much follow time once the process has been started. The offer can be negotiated with close and appropriate follow up.
Best of luck. The Offer in Compromise process is tricky and it is a privilege to file an offer rather than a right. One must remember to cross all T's and dot all I's. As the IRS will decline the Offer in Compromise if it comes over incorrectly, incomplete, or there are compliance issues to be dealt with. Call us at 720-398-6088 for more information concerning the Offer in Compromise process as we would be happy to help. You may also find out more information regarding the Offer In Compromise on our website at www.highlandtaxresolution.com.