Fall 2019 Best Practices for Scoring an Offer in Compromise from the IRS

An IRS offer in compromise could be the ultimate solution to your current tax woes. This arrangement allows you to settle your current tax debt for far less than what you actually owe. It’s not exactly easy to achieve, however. Below, we’ve highlighted a few up-to-date options for scoring an offer in compromise in 2019.

Make the Most of the Collection Statute Expiration Date

A strict statute of limitations grants the IRS just ten years to collect on your tax debt after it is initially assessed. In most cases, the agency is no longer legally capable of collecting once the Collection Statute Expiration Date passes. As a result, this date can serve as a valuable source of leverage as it approaches. When time is limited, IRS agents may prefer the reliability of offers in compromise over installment plans that may or may not pan out.

Avoid Negative Equity

If your property is worth less than what you actually owe on it at the moment, you may be tempted to subtract the negative equity from your net realizable equity. Instead, assets possessing negative equity should be reported as having an equity of zero.

Work With a Tax Professional

Tax experts keep up to date on the latest practices and trends in the IRS. Their detailed knowledge leaves them highly equipped to handle the many complications related to offer in compromise negotiations. If you have any doubt whatsoever about your ability to obtain an offer in compromise, you can benefit from the guidance of an experienced tax professional.

As you aim for an IRS offer in compromise, don’t hesitate to seek help from the Highland Tax Group. Committed to serving your best interests, we will advocate on your behalf to ensure the best possible resolution. Reach out today to get started.