Atlanta CPA on Not Just Offer Submission, but Strategic Offer Consideration & Submission
Like Nehemiah in the Old Testament we are to be both thoughtful, insightful and full of preparedness as you ready yourself to submit an Offer in Compromise. Rather than “throwing paper at the IRS” it is prudent to spend an adequate amount of time and planning to ensure that you have an Offer that is able to be accepted, and not rejected because of its failure to consider all of the many and varied rules and regulations of successful IRS Representation and Offer in Compromise acceptance. It is always prudent to explore all of the available and appropriate options before rushing to submit and Offer in Compromise that is not processed. Below is a sample inquiry we might receive and the following, our response:
I know when I originally talked to you earlier this year, we talked about offer in compromise. At that point you didn’t have 2010 to look at. Now that we know there is such a large loss for 2010, we know that personally and in the business we have more liabilities than assets. Surely we qualify based on our 2010 situation. Yes, we’ve paid ourselves substantial salaries, but the net effect of our business against those W-2s still means a negative or break even situation. We have no borrowing power because our credit is so low. We have no cash flow that exceed our needs to finance our business needs.
We are desperate at this point. We’d like to offer $10,000 as an offer in compromise.
Below is my response:
Below are the general rules and guidelines to consider submitting an Offer in Compromise. If you after you both review the below and feel you qualify, please get to me ASAP your year to date 2010 internal financials and Form 433A. If you look like a candidate based upon that information then I will need you to complete Form 433B and Form 656. FYI, you can print off all these forms off the IRS web site.
Offers in Compromise to the IRS and/or the state of Georgia is a proposal on your part to pay only a portion of the back income taxes you owe. If the offer is accepted, the remainder of the tax debt will be forgiven. For individuals or corporations with significant tax problems, an IRS offer in compromise can eliminate tax obligations much the same way as filing bankruptcy can eliminate personal or corporate debt.
The IRS has specific rules that must be followed when submitting an offer in compromise, including:
- All tax returns and forms from prior and current years must be submitted
- You must be paid up on all current year tax obligations, including estimated tax payments
- The amount you propose to pay must be reasonable, based on your net worth and estimated cash flows for the next several years
- If the IRS accepts your offer in compromise, you will be required to stay current on all personal and corporate tax obligations for the next five years.
Offer in Compromise Submission
We can help you prepare and file your offer. As CPAs, we are licensed to work with the IRS, and have the knowledge and experience to assist you. First, we will examine your tax problem, and make sure that all tax forms have been correctly filed. We will examine your current financial situation, and determine a reasonable amount to offer the IRS and the state of Georgia, based on your assets and liabilities.
Helping you prepare and submit any required paperwork requested by the IRS as a condition of your offer. Finally, we will represent you before the IRS, and negotiate the amount that must be paid, which will typically be somewhere between what the IRS says you owe, and what you offer to pay.
Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own. Matthew 6:34
In the event that you owe much more than you can pay, our one-stop filing and representation services will be invaluable as you strive to climb out from under what appears to be a mountain of debt. We have successfully assisted many in navigating through the complexity of tax laws surrounding Offers in Compromise and would welcome your call now.
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John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!
Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.
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