Ask the Tax Resolution Expert: Do I need to Disclose Business Records to the IRS for Offer in Compromise Related to Personal Taxes?
As a tax resolution specialist, I help individuals and businesses resolve tax problems every day – and I can help you get the help you need to solve your IRS problems!
Got tax questions about tax audits, wage garnishments, IRS bank levies, payroll tax problems, or income tax relief in general? Call us today at 1-866-IRS-PROBLEMS or visit www.taxresolution.com for a risk-free tax resolution consultation.
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Question: I am in the middle of an offer with the IRS; they are asking for additional documentation as it relates to my business, a corporation. They are asking for all corporate records, bank statements, copies of leases, etc etc. My tax representative informed me that as my offer is related to personal taxes, and not my business, that this request is both invalid and irrelevant and in fact I don’t have to provide this. I’d be curious to know what you think…
Answer: The IRS, during its investigation of the taxpayer’s Offer in Compromise, can and will ask the taxpayer to disclose any and all assets and income. A corporation that is owned by the taxpayer is a personal asset and is included in determining Reasonable Collection Potential and how much of an asset it is. This is standard procedure.
Since the IRS’s Offer in Compromise Program is a privilege and not a right – it is a very subjective process. In 2007, 46,000 offers were submitted to the IRS nationally and only 12,000 were accepted. TRS’s acceptance rate on offers we submit is nearly 5 times the national average. Your current tax representative may not be experienced or specialized at representing taxpayer’s before the IRS. If you chose not to furnish the information that the IRS is asking for, they will return the offer unprocessable without Appeal Rights.
I deal with tax problems every day and this year alone, my firm has successfully negotiated hundreds of IRS settlements at a rate of $0.13 on the dollar. For a free, no-risk consultation, please call my office at 866-IRS-PROBLEMS (1-866-477-7762) or visit the Tax Resolution website.
More Tax Help, IRS News and Tax Relief Tips:
- In Ailing Economy, More Taxpayers Are Likely to Qualify for Offer in Compromise
- Tele-Seminar Featuring Insider Secrets of Tax Relief for Small Business Owners on February 18, 2009
- IRS Announces Unprecedented Opportunity for Recession-Burdened Americans to Settle Outstanding Tax Debts
- IRS Offer in Compromise Helps Taxpayer in Monroe, WA Save More Than $200,000
- Can’t Afford to Pay Your Taxes? IRS Offers Payment Plans and Tax Relief Options
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