Atlanta CPA Advises on Offer of Compromise, Back Taxes and IRS Problem Resolution
An Offer 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.
Preparing the Offer in Compromise
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.
We will help 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.
