Offers in Compromise Decline

According to the IRS Data Book Table 16 the percentage of Offers in Compromise that were accepted went down in 2009 by 15%. The numbers of offers received was 52,000 in 2009 (up from 44,000 in 2008) and the number of offers accepted were only 11,000. In previous years about 25% of the offers received were accepted, but in 2009 that number went down by over 15%. The number of offers accepted did not change. There were 11,000 offers accepted in 2008 and 11,000 accepted in 2009. Surprisingly the amount of money collected from offers went down as well. In 2008 the IRS accepted $200,000,000 and in 2009 the IRS only $157,000,000. Wow, the amount of offers accepted in 2005 was 325 million. With the budget crunch one would thing that the IRS would be encouraged to accept more offers.







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What does your credit report have to do with an Offer in Compromise

Trying to Settle Your Tax Debt to the IRS? Better order a Credit Report.

One of the first things you should do when you want to settle your back taxes owed to the IRS is to order a credit report. The reason is that the IRS Offer Examiner or Offer Specialist will order one and use it as a source of information to evaluate your offer. You need to know what your credit report says before you prepare your financial statements. There may little you can do to change the information on the credit report but you still need to know what it says. The insiders tell me that the IRS uses Experian. You can go to Experian and get your credit report from Experian for only $10. If you want your credit score add another $5. Click here to go to Experian.

And you know me. I can't close without plugging my book Offer Secrets Revealed. You should know as much as possible about settling your back taxes before you submit a form 656. Before you shuck out a load of money for representation you need to facts about offer in compromise. To learn more about how to settle your back taxes and solve your problems with the IRS by an offer in compromise click here



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PVIA Multiplier Reduction Based on Age

Resonable Collection Potential Reduction in an Offer in Compromise

Getting a reduction in the PVIA based on advanced Age can save you money on Offer in Compromise

One of my readers recently faxed me a copy of the Asset Equity Table and Income Expense Table which showed the a PVIA multiplier of 26 instead of 48. This reduction was based on the age of the taxpayer. If you or one of your Offer in Compromise clients is nearing retirement or retirement age then you may want to learn more about this recent development.

It may help them solve their tax problems with the Internal Revenue Service by settlement of their taxes through the IRS Offer in C0mpromise Program. To learn more about offer in compromise click here.



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You may lose your right to an offer in Compromise.

Back door legislation could end the Offer in Compromise Program

Congress has inserted language in the current budget reconciliation bill which will surely spell the end of the IRS Offer in compromise Program. Under the new law the IRS can simply return your offer in compromise when it deems the offer to be a "FRIVOLOUS TAX SUBMISSION." Guess what a "FRIVOLOUS TAX SUBMISSION" is? A "FRIVOLOUS TAX SUBMISSION" is anything the IRS says is a "FRIVOLOUS TAX SUBMISSION." The new law says that the IRS will define a "FRIVOLOUS TAX SUBMISSION." Have those people in Congress lost their mind? The IRS can not be trusted to regulate itself. This not all the bad stuff in this bill. If the IRS determines that you made a "FRIVOLOUS TAX SUBMISSION" then they can levy a penalty of $5,000 on you. Several years ago Congress gave Taxpayers some rights to challenge the IRS. Under certain circumstances a taxpayer is entitled to a hearing when the IRS files a lien or proposes to seize a taxpayers property. If the taxpayer follows the procedure correctly then he may appeal the IRS's decision to the courts. With this new law the IRS can prevent the taxpayer from getting to court by calling his claim for relief a " FRIVOLOUS TAX SUBMISSION" Steve Kassel, EA of eTaxes.com has written some commentary on this horrible piece of legislation. For more click here.

Trying to settle your taxes and solve your IRS problems with an offer in compromise could become very difficult in the very near future. If you owe taxes you can not easily pay you need to read my book Offer Secrets Revealed. Click here to learn more


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Death to Offer in Compromise

Is IRS Commissioner trying to Kill the Offer in Compromise Program

It may soon become harder for taxpayers seeking to solve their IRS tax problems with an IRS tax settlement through the Offer in Compromise Program if some of the pending changes take place.

Some of us who follow the developments is the area of offer in compromise have long been suspicious of current IRS Commissioner Mark Everson and what appears to be his campaign against the IRS Offer in Compromise Program.

It appears now that the IRS will be reducing the number of Offer in Compromise Specialists from the current number to just over 150 in an effort to get more Revenue Officers in the field and to centralize the offer in compromise program. Is this part of Everson's effort to destroy the neuter the Offer in Compromise Program. See what Steve Kassel EA has to say about it. Click here. Or check out his web site eTaxes.com

To learn more about how an offer in compromise can be used to settle your taxes click here

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IRS Offer in Compromise War Stories

Tax Settlement War Stories from the Trenches

Ok, I would like to say I had this planned all along when I first set up this blog, but that would not be true. I just thought of this today and decided it would be a great way to provide useful information.

Starting today I will be bloging my tax settlement war stories on my other blog IRS Compromise.

Sometimes many things can be learned from a war story. I love war stories. I love to hear them and I love to tell them. Hey, who does not. I have been winning battles with the IRS for years and yesterday I settled another case for less than ten cents on the dollar after the taxpayer had seen another professional and received a rejection on full pay. I did some of my magic and settled the case for $7042. It is and interesting story and I learned a new trick. Read my latest IRS Offer in Compromise War Story

And of course if you want to become an expert on IRS Offer in Compromise then you need to get my book. Offer Secrets Revealed

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Power of Attorney For Offer in Compromise

Form 2848 Power of Attorney For Offer in Compromise Tax Settlements
Tax Payers with problems seeking solutions for their tax problems may need some help. The taxpayer looking for a settlement and their representative must complete and submit a Form 2848 Power of Attorney. An offer in compromise submitted with an incorrectly filled out Form 2848 is a sure way to derail your office in compromise. Here are a few tips.

1. Double check the Social Security Numbers and Employer ID number.
2. Never use more than one Employer ID number, prepare a second Form 2848.
3. Be sure to enter all the information in the columns in paragraph 3.
4. Double check that all signatures have been obtained.
5. Double check to make sure that all the signatures have been dated.

Be sure to provide accurate information in each section. Submitting a valid POA (power of attorney) on a properly completed Form 656 will help the offer proceed more smoothly.

If you have IRS Problems and are contemplating an offer in compromise to settle your taxes, you should read my ebook Offer Secrets Revealed. Click here for more

Offer in Compromise Goes to Court

Taxpayer fails to solve IRS tax problems with Offer in Compromise

Joseph Dostal vs Commissioner T. C. Memo 2005-2647 November 16, 2005

Once again the Tax Court flames a taxpayer who challenges the rejection of an offer in compromise. The taxpayer made a timely application for a CDP. At the Collection Due Process hearing the taxpayer proposed an offer in compromise to settle his tax debt and solve his tax problems with the IRS. The taxpayers Form 433A and 433B clearly showed the taxpayer could full pay under the guidelines set out in the Internal Revenue Manual. The petitioner had $74,000 in IRA accounts and had income exceeding allowable expenses of $9,428 per month. No wonder the Tax Court agreed with the Offer Specialist. So what can we learn form this case? Click here

Offer in Compromise - Goes to Court

Offer in Compromise - Goes to Court
On Nov. 1, the United States Tax Court handed down another defeat for a pro se taxpayer challenging the collection action of the commissioner. In Wilcox vs Commissioner, T. C. Memo 2005-257 the Tax Court held that the taxpayers vague suggestion of an offer in compromise was not enough to find that the denial of relief at a CDP hearing was an abuse of discretion.

A taxpayer who timely requests a CDP hearing and submits an offer in compromise at that hearing is entitled to challenge the denial of the offer in compromise in Tax Court ( or U. S. District Court if employment taxes are involved.) Wilcox acting pro se was just not savvy enough to have submitted a properly filled out form 433A or Form 656 Offer in Compromise. You can find the full text of the case at my website Offersecretsrevealed.com

Offer in compromise numbers down for 2004

Offer in Compromise Numbers Down. The number of IRS Offers in Compromise received by the IRS sharply decline.

The year 2004 saw a sharp decline the number of offers in compromise received by the IRS. In 2001 the IRS receive 125,000 offers in comprimise from people trying to get tax debt relief. That number declined to 124,000 in 2002. The number of offers in compromise increased again in 2003 with over 128,000 taxpayers seeking IRS tax help in solving their tax debt. However, 2004 saw a serious drop in the number of people seeking a tax debt settlement by submitting an offer in compromise. Only 106,000 people tried to get tax debt relief and solve their IRS problems by submitting an offer in compromise.
This should be contrasted with the number of delinquency investigations conducted by the IRS in 2004 which was up by 38% over the 2003 numbers. The numbers seem to suggest that the automated IRS Levy is one of the new primary collection tools. As the automated collection centers continue to grow and the field activities continue to decline. The automated bank levy and wage levy seems to be the front line of the collection activities the IRS is using to collect IRS tax debt. IRS levies rose over 20% with an additional 348,769 levies being issues in 2004 over the amount issued in 2005.
My guess is that number will not increase to much in 2005 because of Hurricane Katrina. The IRS has decided not to issue a bank levy or a wage levy on any taxpayer who lives in a disaster area and was affected by the hurricane. The disaster area includes the entire State of Louisiana, most of Mississippi, and big chunks of Alabama and Florida. This moratorium on use of the IRS levy will be in effect until February 28th, 2006