Top 5 Tax Negotiations Do’s and Don’ts for a Successful Offer in Compromise
It doesn’t surprise me that TRS gets asked all the time about the Offer In Compromise Tax Negotiations Do’s and Don’ts. The OIC process is so complicated and detailed there’s no wondering why the Offer acceptance rate is so low. For example, in 2007, 46,000 Offers were submitted and only 12,000 or about 26% were accepted. TRS’s acceptance rate on the other hand, on offers we submit is nearly 5 times (approximately 90%) the national average. To help your success I have outlined some tips below.
1. Use the correct and revised Offer In Compromise forms and “Collection Information Statements” (433-A and 433-B) to disclose all income, expenses, assets, and liabilities so that the IRS can conduct an initial determination on your Offer In Compromise .
2. DON’T fail to submit the Application fee and the 20% non-refundable deposit (on the offered amount) with the submission of your Offer In Compromise documents because it will cause the IRS to merely return it back to you or cause major delays in the process.
3. Check and double check your math. The IRS may determine that, if you submit an inaccurate Offer In Compromise it is solely due to you delaying and hindering them from the collection of the tax liability!
4. DON’T fail to correct the form because the IRS won’t fix it for you.
5. DON’T submit an inaccurate amount or make the mistake of miscalculating because you are signing it under “penalty of perjury” and may be considered an indicator of fraud and may subject the taxpayer to civil or criminal fraud penalties.
Finally, take the time to hire a professional tax expert to make your tax debt relief action plan.
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