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Offers in Compromise

An Offer in Compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer’s liability for a reduced amount. The IRS is required by Congress to settle or compromise federal tax liabilities by accepting less than full payment if certain conditions are met. The compromise process is available to provide taxpayers with a fresh start toward future compliance with tax laws.  Submitting an Offer in Compromise is a formal and complicated process. You cannot simply call the IRS and offer a certain amount of money. In-depth financial disclosures through a formal process must be made to the IRS and the process involves completing several IRS forms, gathering and organizing necessary financial records, complying with the IRS tax regulations and ultimately filing the “offer” for review with the IRS. A very high percentage of all Offers in Compromise filed in the U.S. are rejected by the IRS. This is because most Offers in Compromise are filed by “tax resolution” companies who make empty promises in television commercials without even knowing the DETAILS of the potential client’s problem.

Our firm will not file an Offer in Compromise simply for delay tactics or because an empty promise was made. We will diligently do our research and thoroughly investigate the facts pertaining to you, as an individual, and will only apply for this program if we feel the client is a good candidate. MOST TAXPAYERS DO NOT EVEN OWE THE AMOUNTS THE IRS SAYS YOU DO! (Our thorough research bears this out time and again!) The final decision as to whether an Offer in Compromise is accepted ultimately rests with the IRS but, if accepted, the tax debt is effectively settled for a significantly reduced amount. Unfortunately, many taxpayers who file an IRS “offer” have it returned by the IRS for “technical” reasons, like an improperly completed form. This means that the “offer” never makes it to a point of final IRS review. So, satisfying the maze of IRS procedural requirements is necessary for an “offer in compromise” to even be reviewed by the IRS. Hence, it is extremely important to have an experienced firm on your side throughout this process. Once an “OFFER” is submitted, all other collection activity is required by law to cease.

Rhonda L. Russell, Principal / Russell Financial & Business Services / NIPR National License # 8728891
Bidwell & Russell Tax Defense, Ltd / Tax Attorney & IRS Audit Representatives
Tax and Estate Planning / Tax Debt Solutions