Offer In Compromise San Diego
An Offer in Compromise has been touted as a tax settlement program that allows taxpayers to settle their debts for “pennies on the dollar”. The tax professionals at Flat Fee Tax Service will be the first to tell you that there is no magic wand for eliminating federal IRS tax debt.
Everyone is not qualified and eligible for this type of tax settlement procedure. A successful Offer in Compromise requires an immense amount of financial disclosure.
In order to create a tax relief option for you, a full financial of the taxpayer should be taken and assessed by a licensed tax professional. Our tax professionals encourage all taxpayers to simply ask the company representatives they are interviewing if they are licensed attorneys.
Eight hours of sales training just is not enough to get a taxpayer through this process. Check out the internet for complaints. Compare fees.
What You Need To Consider For An Offer In Compromise
A general overview divides most Offers in Compromise (hereinafter “OIC”) into three categories: wage (W2) earners, self-employed/small business owners, and corporations. The vast majority of all types of settlement Offers will require between 6-18 months of time with the Revenue Service after submission, and most taxpayers require approximately a month to gather all necessary items.
While under consideration, taxpayers remain free from collection actions taken by the Revenue Service, but balances continue to exist and grow due to interest and penalties. Some items that are typically reviewed by the IRS when you submit an Offer in Compromise package are:
- Forms 433A or B, or both;
- Form 656;
- Bank statements;
- Mortgage statements;
- Asset valuation statements (401k or IRA statements);
- Vehicle ownership statements;
- Profit and Loss formatted for a year to date information;
- Medical cost invoices;
- Internal tax account histories.
California Tax Debt – Offer In Compromise
The state of California Franchise Tax Board (FTB) also has an Offer in Compromise procedure but is even more difficult than the federal tax settlement in its requirements in the granting of a successful Offer. we all know that the State of California is dead broke. The FTB wants every penny they can collect. There are options available but you will need a seasoned tax professional to navigate the FTB for you.
Filing An Offer In Compromise
The State of California does not give out statistics for DIY (do it yourself) tax settlements. For the federal IRS, you have approximately a 30% chance of acceptance if you DIY.
FLAT FEE TAX SERVICE HAS A 90% OFFER IN COMPROMISE SUCCESS RATE.
If you are considering undertaking an Offer in Compromise procedure, call our tax professionals now. The consultation is free.
FLAT FEE TAX SERVICE, INC.
FREE CONSULTATION – 1-866-747-7435
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