Blog – When to contact, and when to retain, a tax attorney for your Offer in Compromise
When considering an Offer in Compromise it is important to understand that the Internal Revenue Service is in the business of collecting taxes and any information provided to it will be used for that purpose. In the event you submit an offer and your offer is rejected by the Internal Revenue Service, all information provided to it through this process will be used to take collection action against you.
Employment information can be used to garnish your earnings, bank account information can be used to levy the full balance of any account you have, and information surrounding assets you have can be used to seize and sell them to satisfy your liability with the Internal Revenue Service. For the above reasons, it is important to know if you are a good candidate for an offer before filing and you will want to contact a tax attorney to do a full analysis, determine your eligibility, and advise you on any risks that could be involved.
After completion of your analysis, you may determine that an offer is not right for you or that an offer is a good option. The OIC process is very complicated and taxpayers who attempt their own often come to us in despair, because they are unable to get an OIC accepted by themselves. A good tax attorney is almost necessary to get an Offer accepted.
However if you will realize any savings, there is no reason not to hire an experienced tax attorney to handle your offer.
The offer process is largely based on the preparer’s ability to make sound arguments to the Internal Revenue Service on what can and should be the bases for the offer. Knowing where the Internal Revenue Service is flexible, where it draws a hard line, and where you can claim future expense is key to making the lowest possible offer. Being able to qualify an expense of $500.00 per month, where without the experience in preparing these you would not know, could reduce your offer by $6,000.00. In most cases this additional savings would be more than the cost of the offer all together.
If you are considering an Offer in Compromise, our office would be happy to discuss the possibility of doing an analysis of your financial situation to make a determination of what a reasonable amount to offer would be.
Are tax concerns keeping you up at night?
Call Martelle Bratton and Associates today and start sleeping again…
– Teresa M. Bode J.D.