Our client came to with a tax bill totaling just over $33,000. She needed to file a few tax returns and also needed to deal with the outstanding issues facing her from the IRS. She was scared, unsure as to where to go, and not able to discern what to do in relation to the IRS bill. We were able to meet with her to discuss her options. She was looking to settling on what she owed via the IRS Offer in Compromise process.
The first step to resolving her IRS tax issues was to call and find out what was owed as well as if there were any IRS returns missing. We also ordered transcript records to insure the amounts due were correct and owing. We also were sure to let the IRS know we needed time for the taxpayer to file her missing returns as well as for us to review her financial situation to determine the next logical steps. Ideally, once the financial review was complete, she would qualify for an IRS Offer in Compromise.
After our client worked with one of our trusted partners to get her returns done, we were able to take the next step. We took a look at our client’s financial situation as well as what she could afford to do. After reviewing her situation we figured out she didn’t have hardly any equity in assets, with the exception of her bank accounts. She didn’t own any vehicles outright or have any retirement accounts either. Finally, she is a caretaker and actually lives with her only patient. Therefore, she doesn’t own any property either. We figured out she was the perfect fit for an IRS Offer in Compromise. We began working on the Offer in Compromise form 433-A OIC and form 656. Once the forms were completed we determined we would file an IRS Offer in Compromise in the amount of $500 to settle on a tax debt of over $33,000.
Once we filed the IRS Offer in Compromise it took well over 8 months to work. We informed our client of the time frame in advance as the IRS is understaffed and operating under budget as well. We simply needed to be patient and our client to do the same. Approximately 8 months later, upon receipt of the initial Offer in Compromise, the IRS accepted our Offer in Compromise of $500 and agreed to settle. We set the client up on the 5 month cash offer, which entails she must pay the IRS within 5 months of acceptance. We mailed out her 1st payment this month! She was very pleased with the results and already agreed to submit a testimonial!!
If you or someone you know can’t afford to pay back their IRS tax liability, and you’re not sure why, give us a call at 720-398-6088. We will be pleased to assist!