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Offer In Compromise


An Offer in Compromise is a means of settling your tax debt for less than what you owe. Avantri Law’s tax lawyer has extensive experience with Offers in Compromise.


The IRS will accept an Offer in Compromise when the tax liability is unlikely to be paid and the offer represents a good deal for the IRS. Alternatively, an Offer in Compromise is method of attacking a tax debt when the taxpayer does not owe the tax.


Offers in Compromise can result in taxpayers settling their tax debts for pennies on the dollar.


Once the Offers in Compromise has been accepted for processing by the IRS, the IRS will not continue with its enforced collection activities. No more wage garnishment or bank account levies  while the offer is being reviewed by the IRS!


If the Offer in Compromise is based on the taxpayer’s inability to pay, the IRS will take into  account the taxpayer’s income and the value of most of the taxpayer’s assets realized in a “quick” sale. To compute the value of the offer, you must take into consideration the IRS’ view of what are the necessary costs of housing, transportation, food, clothing, childcare, and healthcare. Avantri Law has access to the statutes, cases, IRS rulings, and internal revenue manuals that the IRS uses in analyzing offers.


Beware that there are many mills on the Internet cranking out Offers in Compromises that have  little or no chance of being accepted by the IRS.

These companies are not operated by tax  lawyers. They are mills that simply take your money for a useless service. In fact, the IRS is now  warning people to beware of these operators. At Avantri we stand behind our service and  advice because of the level of education and experience we can provide for you.


IRS Consumer Alert About Offer-in-Compromise Promoters



The Internal Revenue Service issued a consumer alert advising taxpayers to beware of claims by promoters that tax debts can be settled for pennies on the dollar through the Offer in Compromise  Program. Dishonest promoters charge a large amount of money by selling taxpayers false promises of settling their IRS debt for pennies on the dollar.


Remember that if you can't talk directly with a Tax Attorney you should not hire the firm.


Part of the IRS consumer alert reads as follows:


IR-2004-17, Feb. 3, 2004


WASHINGTON -- The Internal Revenue Service today issued a consumer alert advising  taxpayers to beware of promoters' claims that tax debts can be settled for "pennies on the dollar"  through the Offer in Compromise Program.


Some promoters are inappropriately advising indebted taxpayers to file an Offer in Compromise  (OIC) application with the IRS. This bad advice costs taxpayers money and time. An Offer In  Compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax  debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less  than full payment under certain circumstances.


"This program serves an important purpose for a select group of taxpayers. But we are increasingly concerned about unscrupulous promoters charging excessive fees to taxpayers who  have no chance of meeting the program's requirements," said IRS Commissioner Mark W.Everson. "We urge taxpayers not to be duped by high-priced promises."


Reduced Fee Analysis

For a reduced fee, Avantri will review your situation and tell you whether you are candidate for an Offer in Compromise.  You do have not have to hire Avantri Law to complete your Offer in Compromise.  This way you can avoid paying high fees without knowing whether of Offer in Compromise is a good idea.  Call us for more information.


Recent Update: 

The Viability of the IRS Offer in Compromise Program has Been Reduced.

Please be aware that the IRS Offer in Compromise program has been changed for the worse.  The IRS is rejecting nearly 100% of all offers based on doubt as to collectability. Further, new rules require a 20% non-refundable deposit when submitting an Offer in Compromise based on doubt as to collectability.  We are still getting Offers accepted by the IRS but only on appeal and only for perfect candidates.  We are refusing to do offers for many clients asking for them.  They simply do not qualify.  This is an unfortunate development, but one that is consistent with recent IRS tax collection policy.


For more information: taxhelp@taxdefendant.com

or

425-259-9363


IRS Tax Attorney - Offer In Compromise