Here at Highland Tax Group, Inc., we do our very best to settle debts whether it is a payment plan, penalty abatement, or offer in compromise. Today, we are discussing a client who has kidney disease and is currently on the list for a transplant.
We filed an Offer In Compromise for the 1040 debt totaling $202,075.00 covering several different years of debt. We settled the outstanding IRS tax debts for $5,693.00. The client has since paid this amount in full by borrowing from friends and family. The tax liens have also been released.
Now, this is not a standard resolution. The client rents a home, has a car that is paid off, does not make too much income and his health is declining. In other words, he did not show the ability to pay the entirety of the debt. I hope this helps clear up any misconceptions of the Offer In Compromise program.
The Offer In Compromise program is glitzy, glamorous and fits the bill for the ads you see on tv. However, as you will see, each resolution carries a small story with it, either how the client fell behind, what they did to resolve the issue, what we have done to assist, etc. In this case, the client had tried to file an Offer In Compromise on his own and was unsuccessful. We assisted him by exercising the utmost professionalism in dealing with the IRS and for this reason, and many others, we were successful.