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The offer in compromise program was designed
to collect as much money as a taxpayer can pay now and for
a period in the future. The design of the offer in compromise
program is such that the IRS intends to get every last penny
you have and then some, to settle the tax. (Even
though there are ways around this result, it is still, important
to understand the goal of the Offer Specialist that will
be reviewing your offer)
That is the bad news. The
good news is that with planning you can get this amount
way down.
The IRS processes more that 150 million tax
returns every year. The enormity of the job is such that
it has to have a systematic approach to accomplish this
task. With a decreasing budget and fewer employees the IRS
is forced to systematize almost every function it has. As
a result the IRS is heavily dependant on its computers to
do almost every thing. To accommodate the computerized
system approach, the system forces the IRS employees into
an "every thing must fit into a box mentality."
Any task that requires a real person to perform
is a bottle neck in the process. Understanding this process
is a key to understanding how to "work it to your advantage".
To settle your taxes for the
lowest offer in compromise possible you will need to understand
how to "work the system" to your advantage and
do some common sense planning
"Working the system" is not illegal.
Doing anything illegal is not "working the system".
The IRS Offer in Compromise system is based
on a formula. The formula is used to calculate the lowest
amount the IRS will accept in an offer in compromise.
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Under this formula, your financial information is
analyzed by the IRS. Using the very financial
information you voluntarily provide, the IRS determines
a minimum acceptable amount. They look at the financial
information that you provide on the Form 433A and
determine how low they will go. If you offer more
than their calculated minimum, your offer will be
accepted. If you offer less than their minimum,
they will usually make a counteroffer, by giving
you an amount that they will accept. Sometimes the
counter offer is their bottom line, and sometimes
the agent is trying to negotiate. |
The IRS focuses solely on the Form 656 and
Form 433A (unless you own a business and then they will
look at a 433B) The 433A information is the foundation
for determining how much they will accept.
Since the IRS is focusing on the Form 656
and 433A, you need to focus on the 433A. You can find the
formula in the Offer in Compromise package. Click
here to download the package. You should develop
some planning strategies and implement them. After
you have implemented your planning strategies and calculated
the lowest amount that the IRS will accept, use that amount
on the Offer In Compromise Form 656.
I have written a book on Offer in Compromise.
My book shows you how to prepare an offer in compromise
for the least amount the IRS will take. Since the
key to getting the IRS to accept the lowest amount possible,
is planning, my book focuses on the planning required to
settle your taxes for unbelievably small amounts.
If you would like to learn more about making an offer in
compromise, you owe it to yourself to get my book
Offer Secrets Revealed.
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Learn how to settle
your taxes for pennies on the dollar!
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To
learn the techniques used by the professionals
to settle taxes for pennies on the dollar,
you need my book:
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FINALLY, an IRS
Offer in Compromise Book!
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To
learn more about my book on Offer in Compromise
Click Here
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