Addressing Tax Issues with the State of Georgia 

Dealing with the state of Georgia about your open tax issues, back taxes or an Offer in Compromise are critical to ensuring that your tax does do not indeed worsen. Retaining a CPA by filing a Power of Attorney is your best first course of action to assure that your rights and interests are protected as well as being sure to pay your lowest legal possible tax and that all penalties possible are abated. Below is a sample letter that I use to address such issues. Caution should be exercised though not to represent yourself either before the IRS or Georgia as those actions are a recipe for disaster. 

Georgia Department of Revenue, Lithia Springs Regional Office

351 Thorton Road, Ste. 101, Lithia Springs, GA 30122-1596 

Dear Sir or Madam, 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament with the Georgia Department of Revenue. The taxpayers have assured me that they want to deal with the state in a good faith attempt to address any unpaid state taxes that they might owe. Please forward to me at your earliest convenience a detailed record of account and a copy of the tax forms in question so that I might help advise the tax payers accordingly. 

Please note per the enclosed paperwork that one of the tax years listed is for the 1992 tax year. Please advise if this is correct and what the statute of collections for unpaid Georgia is and the number of years.

The taxpayers have advised me that they are desirous to address these taxes and to get back in good standing with the state of Georgia. Please cease all collection efforts while the taxpayers are working to address this matter. 

I appreciate your attention to this matter and please do not hesitate to contact me if you have any questions. 

Sincerely, John C. Dillard, CPA, PC. Partner in Charge 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. 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 visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

Georgia Installment Plans & Offers in Compromise

Serving as an Award Winning CPA to Alpharetta, Sandy Springs, Roswell & Beyond 

Working with the state and not against it is your best option for getting your tax issues resolved. Hiding you head in the sand will only make the situation worse and taxes and penalties are added and collection efforts are intensified. Below is a sample collection letter we might use to set up an installment plan. 

Georgia Department of Revenue

Installment Payment Unit

1800 Century Blvd., Ste. 18225

Atlanta, GA 30345 

Enclosures: GA letter dated 6-20-09  

Dear Sir or Madam 

I am following up on the taxpayers open monies due the state of Georgia and to set up an Installment Agreement thereon. I have previously forwarded for your review a copy of the last piece of correspondence regarding their IRS Offer in Compromise. As you can see from the correspondence the taxpayer has no substantive assets, cash flow or funds of any type. This is the most they are able to commit to at this time. Accordingly, please cease all collection efforts while this Installment Agreement is being processed.  

I have previously forwarded GA Form 9465: Installment Payment Plan Application for the above referenced taxpayer listing the most that they would be able to commit to on an monthly basis as $100 per month. Accordingly I have enclosed a check for the first monthly payment. The taxpayers are desirous to settling all of their tax debts and this will be a positive step in that direction.  

Please accept this Installment Plan as originally forwarded. 

Please do not hesitate to contact me if you have any questions or need any additional information. 

Sincerely, John C. Dillard, CPA, PC, Partner in Charge 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. 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 visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304 Serving Metro Atlanta for over thirty years.

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

Sample IRS Audit Letter in Anticipation of Impending Audit Meeting

-Proudly Serving Lawrenceville and Snellville as a CPA for Over 27 Years

When getting ready for an audit the first best call is to a well experienced CPA to ensure that both your rights but more importantly that you return is correct and prepared to best ensure your lowest legal possible tax. As a Body of Believers, though we are to submit to Authority, we are not required either by tax law or by our faith to pay more than our fair share and therefore just and legally liable tax obligation/bill.

All correspondence with the IRS should be an ends to an mean and help to encourage the client, the IRS and their agent to close their file as quickly as possible, while ensuring that you pay only your legally liable tax. To that end I have provided the below sample audit letter detailing what we did, the terms and even enclosing the check to pay the taxes and interest in full while asking for penalty abatement. For the easier a CPA can make it on the agent to adequately and efficiently close their file is a win for both the IRS and the client.

Internal Revenue Service

401 W. Peachtree Street

Atlanta GA

Enclosures: Power of Attorney

Dear Sir or Madam, 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their tax issues.  I am willing/eager to supply you with any information that you might need in order to process the audit. I have worked with the client to get their tax filings correct for the _____ tax year and payments current ASAP. To that end I have prepared for you a Form 1040X for the _____ tax year.

Enclosed please find a check for $____ to be applied as follows:

Tax                        $ _____

Interest                  $_____

With the payment of the tax and interest in full I am asking that any potential penalty assessed be abated. It is my goal to help in their efforts to return to compliance. Since I have assumed the role as their financial advisor (they had none previously),  I have consulted with them, and in good faith and within 30 days pulled all of the information together that you had requested.

I believe the penalty abatement is a just request as I believe the IRS is a fair institution designed to help taxpayers pay their just taxes.

I appreciate your attention to this matter and look forward to working with you to close their file.

Sincerely,

John C. Dillard, CPA, PC

Partner in Charge

John Dillard is an Christian Speaker/Author and Certified Public Accountant. 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 visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

Duluth, GA/Gwinnett County CPA Provides Sample Offer in Compromise Letter for Offer in Compromise Appeal

Below please find a sample Offer in Compromise Letter that one Might Use for an Appeal. All letters to the IRS should be drafted with an means to an end, build empathy, create trust and cite tax law. Helping processing agents understand a tax case can do much to have an Offer in Compromise accepted saving thousands of dollars, avoid unnecessary fines, penalties, levies and garnishments. Working with the IRS and within the confines of “the system” with a CPA who is well versed about such matters will do much to aid and albeit the Offer Process. Ensuring that you follow the IRS Appeals Process to the letter of the law is a critical component of a satisfactory IRS experience.

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to process an Offer in Compromise on their behalf.  I am willing/eager to supply you with any information that you might need in order to process the Offer. Pursuant to your last letter I am forwarding you information for you to reconsider as I disagree with your findings. The amount offered is not less than what would be their reasonable collection potential. If you do not agree with our findings, then please note that I would like to have their Offer forwarded to the Office of Appeals.

1. My name is John C. Dillard, CPA,  of His CPA PC.

2. If you fail to agree with our findings, I would like to appeal their Offer in Compromise to the Office of Appeals.

3. Enclosed please find a copy of your 5-8-09 letter.

4. The tax years/period involved is, 2005, 2006, 2007.

5, 6 & 7. The facts supporting our position that we do not agree with and why we do not agree with each item are presented below. The law, and all other authorities we are relying on are submitted below. I believe their Offer amount is reasonable because:

Code Section 5.8.5.5 (as drafted 9-23-08) Covering Dissipation of Assets details the rules and regulations surrounding consideration of when Dissipated Assets should be included for Offer Calculation Consideration. The below items are in alignment with my client’s case and directly contravene with IRS stated guidelines when Dissipated Assets should be considered. Therefore all of the below items support non-inclusion of these monies in any Offer Calculation or Consideration:

- IRS Code Section 5.8.5.5 paragraph (3) states that the “inclusion of the value of dissipated assets must clearly be justified in the case file and documented…[based upon] an analysis of the following facts.” These factors include the below items, which would bare fact and testimony, to the fact that these transfers should not be included for consideration in determining the Offer amount assessable:

-The taxpayer did not make an illegal conveyance or one specifically excludable by tax law.

-The taxpayer did not realize any funds  or rights of any type from the transfer of the assets.

-The taxpayer did not realize any benefit either in goods, services, or future value from the disposition of the assets nor did they have any control, of any type whatsoever, as to how the monies were used.

-The taxpayer had no future value in any of the assets and the taxpayer accordingly has had none and continues to have no further interest in those assets.

-Based on a fair and just analysis of these facts alone there is no value, which is appropriate to be assessed to the taxpayer for these monies. The intent of IRS Code Section 5.8.5.5 regarding Dissipation of Assets as detailed in section line paragraph 5 (see attached) was to add value to the calculation for the “Sale of real estate and “gifting” the funds from the sales to family members. The client has assured me that there are no such illegal/reportable transactions and that these monies were give only to qualified charitable organizations. I believe assigning a value to these charitable donations is not in accordance with tax law in both its legality and its moral turpitude. IRS Code Section 5.8.5.5 states in paragraph 6 (see attached) that “The value of dissipated assets should not automatically be included in the calculation of RCP. Each particular case must be evaluated on its own merit, and meeting the facts stated in paragraph (3).” For the above reasons as detailed above in paragraph 3 and as detailed above the rules of Dissipated Assets and their inclusion in this case are not appropriate and are not applicable.

-Furthermore there is one exception to the clauses above as detailed in paragraph 8 (see attached) of IRS Code Section 5.8.5.5, which states that “if the taxpayer does not provide information showing the disposition of funds from transferred assets, [the IRS can] consider including all of these amounts in an acceptable offer amount”. This exception is not applicable to the client as they have been straightforward, made no illegal conveyances, and have offered full and complete disclosure. Accordingly, applying this exception, that is otherwise allowable, does not pertain to the client and is therefore not appropriate for consideration.

In addition to the items which make the rules of Dissipation of Assets not applicable, I believe their Offer in Compromise as drafted is fair and just because:

-It is my understanding that the Offer process is intended to help people to get back into the system who otherwise are not able to pay their total tax obligations including taxes, penalties and interest. The taxpayers have been for the past two tax years, 2007 & 2008, been current with their filings and their payments. As we discussed their being both ready and able to file and pay their taxes as they go to as a key concern surrounding the payment of their tax monies.

-Based upon the IRS OIC Monthly Low Income Guidelines (See Form 656 Instructions) the client’s 2008 AGI is substantially (over one-third) below the $33,000 Low Income threshold, based upon their family unit size. Therefore, using IRS criteria the client has a low income and is available for special consideration when making/paying their application fee. Though these guidelines do not pertain to the Offer calculation determination process itself, it shows that in accordance with IRS guidelines that taxpayers are on the lower spectrum in terms of their income level.

-Assigning a value to an asset that is no longer available has the “net affect” of creating an “artificial asset” It is my understanding that the Offer in Compromise process is intended to help those get back into the tax system who otherwise do not have the ability to ever “catch up” allowing them to get their tax obligations and  payments current. As such there payment of past charitable donations were legal conveyances that should be reviewed the same as any other business or personal expense. For example, if these monies were utilized to pay valid business expenses or personal tuition the net effect of this, as well, would be that the monies incurred and paid have been spent and are now not recoverable.

-Whether past expenditures were prudent or ill timed the expenditures incurred were valid legal conveyances and as such should be treated accordingly. If these monies were spent for example for tuition monies I believe that assigning a Offer value to these monies would not be includable in the determination of any Offer amount. As such, with all past expenditures, these past spent monies are now gone and there is accordingly no hope, valid recourse, expectation or anticipation of recovery.

-The conveyances were valid, legal and were not fraudulent. Though it can be argued the monies spent should not have been incurred, they did it, the monies are gone, and assigning a value to them will not “bring the money back” or create any assignable net worth. Whether an independent party sees these money conveyances as prudent or not, the payments are gone either way and are not available to preserve or create value of any type. Regardless of the correctness of this economic decision, they did not purposely make themselves poor. How the taxpayer got to where they are today, was not illegal. Indeed the Offer in Compromise process is to help those taxpayers get back into the system who have either made prior poor financial choices or who have suffered through poor economic times or unforeseen circumstances. Since they have no substantive liquid assets, I have suggested that they borrow as much as possible from their friends and relatives. With great difficulty, they have arranged to borrow an amount that exceeds their personal net worth. They have arranged to borrow these funds after the acceptance of their Offer in Compromise. These monies would otherwise not be available as evidenced by the prior correspondence.

-The monies they have obtained so far and the monies being committed to under the Offer to date have been borrowed from family members. Please be advised that the taxpayers have gone back to these family members and have discovered there is no substantive borrowing ability available.

-The taxpayer does not have the money that they are Offering you and absent the family funding they would not be able to do so. The predicament, as with all Offers, is based upon past economic choices for which they are now fully aware of their need to pay their taxes as they go in full as the monies are due and payable.

-It is my goal to help in their efforts to return to compliance. Since I have assumed the role as their financial advisor (they had no advisor previously), I have consulted with them, and in good faith I would like to make and Offer in Compromise for the taxpayers to pay as much of the balance of the tax liability as they possibly can.

-Please note that I have advised the taxpayers that after the acceptance of their Offer that they must stay in compliance by keeping all of their filings and payments current for five years.  They have further been advised that in the event they do no maintain the above that the previously accepted offer would be voided and the previously abated monies would be reinstated.

8.  As the clients Power of Attorney I have submitted the protest and accompanying documents and I know personally that the facts stated in the protest and accompanying documents are true and correct.

Please cease all collection efforts while this Offer is being resubmitted. Please accept this Offer in Compromise as submitted.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ 

Atlanta CPA gets IRS Offer in Compromise Accepted Saving Atlanta Client $57,000

Processing an Offer of Compromise is not for the faint hearted or ill advised. It is not something that I would suggest a client do alone or without a CPA whose experience and track record are provable, documented and verified. Many of our Georgia clients who are struggling with past tax problems, tax liens, tax levies, salary garnishments and other collection issues come to us, seeking wise and informed counsel. Finding a CPA who will tell you the truth, not lead you astray and who has your best interests in his heart will do much to ensure that your time, money and efforts are well intended. Finding a CPA who does not demand all of his money up front will help keep you informed and involved and help ensure that your CPA stays focused on the task at hand.

What Our Clients Have to Say…

Dear John:

There are not enough words too properly thank you for your time and efforts concerning by husband’s Offer and Compromise.

I had worked for nearly two ½ years with a “Brand X” CPA until I was referred to you.  Boy, am I ever thankful for that referral.  You were able to clear up the income tax problem within nine to twelve months which is the time table that you had anticipated.  With your recommendations and guidance, we were able to settle the Offer and Compromise saving $57,000 not even including penalties and interest.

We often jest that you must be a “demi-force” but I think you are just one “hell” of an accountant who knows the system and understands the needs of his clients.

Thank you once again as I look forward to working with you on all of our business and personal returns.  I also look forward to telling everyone what a wonderful job you did.  But I especially appreciate that we are out of purgatory and may venture forward with our life.

Respectfully,

Darcey

We work with our clients to ensure that reasonable expectations are maintained throughout the Offer in Compromise process. Forms 433A: Collection Statement for Individuals, Form 433B: Collection Statement for Business and Form 656: The Offer in Compromise Form are not easy forms to correctly complete, the process is complex and the nuances in the process are virtually impossible without a prudent guide. Often we have picked up where other CPA’s have stopped and enabled clients to get back into the tax system and to have a successful Offer in Compromise experience. One of the watchwords we live by, is to not submit any Offer of Compromise that we do not think we can win. Though there is never any guarantee as there are many surprises along the way, a CPA should be diligent and determined to process only Offers in Compromise that they believe can be successfully completed.

 Put an award winning CPA to work for you today as past winner of the Georgia Accounting Advocate of the Year Award.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

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, Business Acquisitions/Sales,  Forensic Accounting, Business Valuations and Bookkeeping.

Atlanta CPA on Preparing a Cover Letter for Your Georgia Offer in Compromise

I have always found it advantageous in include the Offer in Compromise Offer itself that includes Forms 433A (if an individual Offer), 433B (if a business Offer) and Form 656 (the Offer itself) a cover letter detailing and establishing both a rapport with the client, assertions on a client’s behalf, and a basis for dialogue. Including in this letter it is critical to gain the confidence of both the IRS and the client, confirm an understanding of the rules and procedures of the Offer and any substantive changes/tax issues etc. Below is a sample letter that you might consider as a guide. To help illustrate I have added explanations in brackets (i.e., [ ]).

I am writing you in a good faith attempt to come to terms over the above taxpayers [I would use the same general language whether a corporate or personal Offer, while detailing in the opening salutations the client(s) and either their Federal ID number or SS#]  present predicament and to process an Offer in Compromise on their behalf.  I am willing/eager to supply you with any information that you might need in order to process the Offer.

I believe their Offer amount is reasonable because:

-It is my understanding that the Offer process is intended to help people to get back into the system who otherwise are not able to pay their total tax obligations including taxes, penalties and interest. The taxpayer for the past tax year is current with their filings and their payments [If it is midway through the year or later it is wise to illustrate and show proof that the taxpayer is making filing and paying their current tax obligations. This can be done by including copies of estimated payment coupons and cleared checks or copies of year to date check stubs showing sufficient withholding given taxable income, itemizations and deductions].

-[Usually there are several items that need to be highlighted to alert the Offer reviewer as to how financial circumstances, trends or practices are now different. This gives the Offer reviewer an heightened awareness of what is now changed and why this Offer should be accepted as prepared].

[It is prudent in your correspondence to "paint a picture" so as to bring the Offer reviewer in the know as to how the situation occurred and the client's good faith efforts and results to positively address and resolve past tax issues].  How the taxpayer got to where they are today, was not illegal. Indeed the Offer in Compromise process is to help those taxpayers get back into the “tax system” who have either made prior poor financial choices or who have suffered through poor economic times or unforeseen circumstances.

[Many of my Offer clients indeed have to borrow money to fund their Offer as they have no monies available. Brining this to the forefront does much to help illustrate the advantage of the IRS processing the Offer as submitted. Furthermore if the taxpayer has no ability to borrow money and has exhausted all available avenues, highlighting this issue, in addition to providing evidential matter thereof,  is a wise and prudent financial disclosure]. Since they have no substantive liquid assets, I have suggested that they borrow as much as possible from their friends and relatives. With great difficulty, they have arranged to borrow an amount that exceeds their personal net worth. They have arranged to borrow these funds after the acceptance of their Offer in Compromise. These monies would otherwise not be available to the IRS as evidenced by the prior correspondence.

The predicament the taxpayer now finds themselves in, as with all Offers, is based upon past economic choices for which they are now fully aware of their need to pay their taxes as they go in full as the monies are due and payable.

Please note that I have advised the taxpayers that after the acceptance of their Offer that they must stay in compliance by keeping all of their filings and payments current for five years.  They have further been advised that in the event they do no maintain the above that the previously accepted offer would be voided and the previously abated monies would be reinstated and collection efforts resumed.

Please cease all collection efforts while this Offer is being resubmitted. Please accept this Offer in Compromise as submitted.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

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, Business Acquisition/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Atlanta CPA on How to Utilize the IRS Offer in Compromise Program to Get Your Taxes Back on Track

-Helping Atlanta Business Owners & Individuals for Decades

The Internal Revenue Service’s Latest Changes to the their Offer of Compromise Program is more detailed than it has been in the past. The IRS Offer of Compromise Program was initially established decades ago and the latest changes do much to strengthen and  formalize their program.

Requirements to submit an Offer of Compromise to the IRS include:

-A $150 non-refundable processing fee is required to be submitted with your IRS Offer in Compromise.

-An payment made with the Offer of at least twenty percent of the Offer amount is required to be submitted with the Offer. It can be applied against either the taxpayers outstanding tax debt, or if a taxpayer prefers, returned to them, in the event the Offer is declined. The payment forwarded will not be refunded if the Offer is accepted by the IRS and then the balance of the monies will be due.

-Payment of Offer monies are generally best to be made within 30 days of notification of acceptance. Although tax law allows for payment terms of up to five installments and over a two year/twenty-four month maximum, it is generally best, for all concerned, to pay the amount within the amount of time as specified on the Offer Form.

-Required or statutory collection activity can be suspended while an Offer is pending and under review. However, if the IRS feels that the Offer in Compromise is being submitted primarily for the purposes of delaying collection efforts, the IRS may, in its discretion continue with its collection efforts.

-As part of the Offer, taxpayers are required to stay current on all tax filings and payments for a period of five years as an agreement of the Offer settlement. Taxpayers, who fail to do so, will have their previously abated taxes, interest and penalties reinstated and collection efforts by the IRS resumed. This includes all personal tax filings and payments and all corporate tax filings and payments that a taxpayer is responsible for.

-Form 656 is to be used by taxpayers to submit the actual individual or corporate Internal Revenue Service Offer in Compromise along the $150 non-refundable processing fee.

-Form 433A Collection Information Statement for Wage Earners and Self-Employed Individuals is the form that individual taxpayers utilize to submit their Offer information to the IRS along with required documentation and attachments.

- Form 433B  Collection Information Statement for Businesses is the form that corporate taxpayers utilize to submit their Offer information to the IRS along with required documentation and attachments.

Georgia also has an Offer in Compromise Application Fee Information Sheet to help taxpayers, powers of attorney and tax advocates through the process.

The Internal Revenue Service Offer in Compromise process is complicated and technical and should only be attempted with the services of a Certified Public Accountant/CPA who is experienced and well-versed in these matters. To read more about this process visit articles:

Surviving an IRS Audit

How Audits are Selected
Learning about how audits are selected is the first step to discovering how to overcome the emotional and financial distress that normally occurs as part of the audit process. Lifting this veil will help keep you on an even keel in learning how to deal with the IRS audit.    http://www.hiscpa.com/irs-selection.html

When the IRS Notice Arrives
Rather than beginning the process in fear, discover how you can better prepare yourself so that you are not surprised at the audit process and its ultimate results. By seeing through to the other side you can best ready yourself to close your audit with no adjustments and no additional monies due.    http://www.hiscpa.com/irs-audit.html

Working with the IRS

Solving IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest.    http://www.hiscpa.com/working-with-the-irs.html

Paying Your Taxes – Withholding and Extensions
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed.      http://www.hiscpa.com/paying-taxes.html

How to Avoid an IRS Audit
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit.    http://www.hiscpa.com/avoiding-audits.html

Solving IRS Tax Problems: Submitting an Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve tax problems. http://www.hiscpa.com/offer-in-compromise.html

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

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.