I have had four Offers in Compromise accepted by the IRS in the last 30 days for my clients. If you owe back taxes, now is the time to explore this option. An Offer in Compromise is a process whereby a taxpayer who owes the IRS for income taxes (1040), payroll taxes, trust fund penalties, etc. offers to pay the IRS an amount equal to or in excess of what the IRS believes could be collected from the taxpayer in present day terms. For example, one of our clients had no equity in their home and their monthly necessary living expenses equaled or exceeded their monthly income. In that case, the amount that the IRS was convinced that they could collect from our clients was zero. The IRS accepted our offer to pay $75.00 to cancel over $30,000 in taxes.
I have been doing offers in compromises for over 20 years, since the program first began, and this is one of the most favorable times to get an offer accepted that I have experienced. If you want to explore this option, give me a call.