Taxpayers submitting an Offer in Compromise (OIC) must make a 20 percent nonrefundable, up-front payment in many cases.

The required payment amounts for partial payment OICs depend on the taxpayer’s proposed offer and its terms. Taxpayers who file OICs that ask for one-time payments (also called lump sum offers) are now required to include a 20 percent down payment (based on their offer amount) with the application when it is filed. Taxpayers filing periodic payment offers must include a check for the first proposed installment with their application. The new law also establishes a time period after which the IRS deems an offer accepted.

In order to be considered for an OIC, a taxpayer must have met all of the following requirements:

  • Is not a debtor in a bankruptcy case.
  • Submitted the $150 application fee, or Form 656-A, "Income Certification for Offer in Compromise Application Fee and Payment."
  • Submitted 20 percent payment with the lump sum offer, or a signed Form 656-A, "Income Certification for Offer in Compromise Application Fee and Payment.
  • Submitted the first installment payment on a periodic payment offer, or a signed Form 656-A, "Income Certification for Offer in Compromise Application Fee and Payment.

I no longer directly prepare and manage Offers in Compromise (OIC). I do, however, provide OIC coaching services. I'll assist you as you manage your own Offer through the minefield of the IRS OIC program. I'll review and critique your Offer and I'll even offer suggestions and strategy that have aided me in the past ten years as I successfully managed Offers for dozens of troubled taxpayers across the country.

You'll learn a lot about the IRS's OIC program - both the good and the bad. You'll also learn why it's best that you be deeply involved in your own Offer as your financial future depends on your success.

You'll also learn how to successfully maneuver your pieces on the OIC chess board so that you eventually can look IRS in the eye and say "checkmate" and save yourself literally thousands of dollars.

If you are interested in paying IRS less money than you actually owe them, then the first thing you must do is to determine whether or not you qualify for an IRS Offer in Compromise. Fewer than a third of all delinquent taxpayers qualify for this program which IRS refers to as a "fresh start." Of those who do qualify, more than 75% have their Offers returned because they are "not acceptable for processing." And of those who have their Offers returned, more than half never refile them. But then most of these people are not using qualified help.

Talk to me

Call Me With Your Questions

Offer in Compromise

You can call me to discuss your current Offer in Compromise that you are working on your own - ask all the questions you want to ask. I'll give you my opinion and probably offer you some pointers.

OFFER IN COMPROMISE

As the National Internet CPA, my main business is providing IRS representation and negotiation services to troubled taxpayers nationwide. It's what I do best.

If taxpayers are having a nice day then we're definitely doing something wrong

Its not worth my time or your money for me to work on Offers that I know will never be accepted by IRS. I can easily work with you and pre-qualify you for this beneficial IRS program with a series of questions regarding your financial status. If you fit the profile of a processable and potentially acceptable Offer, I will tell you within a few minutes during our telephone conversation. If you don't fit it, I will tell you so and I will explain exactly why you don't fit so that you will understand my reasons for thinking the way I do. I won't be rude or obnoxious or condescending, either. I will take time to explain matters to you and possibly make suggestions to you that may help you qualify in a few months or perhaps longer.

 

If you qualify for the IRS Offer in Compromise program and you want to proceed with your own Offer, you have several choices:

  • You can do nothing - and IRS will eventually enforce collection and begin pursuing your bank accounts, your paychecks, your 401k and other retirement accounts, your cars, and in extreme cases, even your house.

  • You can get help from someone else. There are many qualified OIC professionals out there - just look at all the websites listed under the search term "offer in compromise." Many of them are top-notch and offer top quality services. However, many others, including the infamous "KJ Horris", are horrible and will only take your money. So be careful. I do not have such a high opinion of myself to think that I am the only person who can help you out of your trouble. But I do think I'm one of the best!

  • You can try to manage your own Offer by yourself. Just remember that over 75% of all Offers are returned by IRS because they are "not acceptable for processing" and that over half of these are never refiled - usually because the taxpayer becomes disheartened, disillusioned, disenchanted, and depressed over the trouble encountered with the IRS' initial negative response to the Offer. If you run into problems, you cans still call me and I'll be more than happy to discuss your case with you and even offer you some advice. I'll probably charge you a little bit for it, but it will be worth it to you.

OR

WE CAN WORK TOGETHER TO SOLVE YOUR PROBLEM

Here's how I work with you and for you as we work together to negotiate a settlement with IRS that can work out to be literally PENNIES ON THE DOLLAR.

You and I will work together to give IRS detailed information such as:

biographical info housing & utilities bank statements
paycheck stubs education costs credit card debt
asset & liability info life insurance child support
medical expenses auto info child care

You will use this information to prepare the necessary forms and disclosures that IRS requires in order to begin processing your Offer. Depending on your particular case, you will also attach various disclosures and supporting documents which are required by IRS.

IRS now requires that all Offers be filed for processing in either Memphis, Tennessee or Brookhaven, New York. Some of the more difficult Offers will then be sent to local IRS offices to be worked by the local Offer groups that still exist in those cities. Prior to this "centralization" effort by IRS which has actually resulted in creating havoc for OIC taxpayers, most Offers were taking six to nine months to work and close. Local IRS Offer Specialists were each carrying an inventory caseload of as many as sixty or more Offers; so IRS decided to try to streamline the process and is now working the Offers in Tennessee and New York.

They were hopeful that this new way of handling Offers would reduce the time needed to investigate and eventually close the easier Offers. However, all of us "professional types" have found that this process is frustrating, time consuming, and irritating because many of the IRS Offer examiners are ill-trained, ill-equipped, and ill-prepared to perform tasks that should be assigned to IRS employees who know what they're doing. As the sayings go, though, "there's nothing we can do about it" and "what do you expect from the government?"

Once you prepare your prepared forms and attachments and I have reviewed them, all you have to do is sign the forms and mail them to the IRS office responsible for the initial processing and eventual working of your Offer and then wait to receive IRS confirmation of receipt of your Offer. The new IRS regulations give Offer filers just one attempt to file an "acceptable for processing" Offer - if it's not acceptable, then IRS will return it with an explanation of its unacceptability and tell the taxpayer that they must wait twelve months before they can file a second Offer. So now the pressure is on to get it right the first time with no room for error.

Therefore, if the Offer is returned to you because of any mistake or error on my part, I will refund any and all payments you have made to me for the Offer. Again, my opinion is that if it is my fault that your Offer has been returned, then I have not done a proper job and have therefore not earned any fees. This may affect my cash flow, but it will also serve as an incentive for me to be careful and very precise about the Offers I send out.

So call me. We'll discuss your assets, your liabilities, your monthly income and expenses. If you fit the profile, I'll tell you. If you decide to proceed, you will then be responsible for providing me with accurate information which will be used in the preparation of your necessary forms.

My fee for OIC coaching through preparation, filing, management, negotiation, and completion of your Offer is $895. Compare my fee with my competitors and you will discover that this a good rate. I have found that with my years of experience I am able to offer you great advice as you prepare and process your Offer.

My opinion is that you should never trust someone else with such a financially important part of your life. You should be involved from start to finish in a deeply detailed manner because no one will be as concerned about your Offer as you will - not even some other professional who you might pay $3,000 to $10,000. Remember, your Offer isn't the only Offer those professionals are working.

You can review the table below to see my payment requirements for various fee totals.

I will require a retainer to be paid when you decide to join my Coaching Team. You and I will discuss the information required by IRS to complete an "acceptable for processing offer." You will prepare the Offer form 656 yourself and also the accompanying support form 433A and 433B (if it is required).

You will then mail a complete copy of the package to me and I will review it. You and I will then go through your package in a detailed manner so that you understand the IRS strategy to "trip you up" and return your Offer to you as unacceptable.

You will then make corrections and additions to your Offer and mail it to me again. We will go through this same process until you and I both agree that you have a "better than good" product. By this time you will have a very good working knowledge of the IRS OIC requirements.

When you mail your final product to me and the IRS, you'll have to wait about four to six months before an Offer Examiner begins working your case.

Once the Offer Examiner begins working your case, that person may or may not contact you for additional information.

I will then prepare your Offer and contact you. I will then mail you two copies of your GUARANTEED Acceptable for Processing Offer in Compromise - one for you and one for IRS. You will sign and mail the IRS copy and then you will be on your way to a negotiated settlement with IRS for your entire tax debt.

During the following months, we will work together to reach a settlement with IRS. Additional information may have to be provided to IRS so that they can verify your financial status, but theoretically they should have all the information they need, especially since they have instituted the new processing requirements discussed above.

Then, at the end of the process, provided all of your disclosures are accurate and IRS finds no hidden or understated assets, overstated liabilities, undisclosed or understated income, and/or overstated expenses - you will reach a settlement with IRS that will completely free you from your financial burden.

Remember, I want you to beat IRS at this Offer game, but it's a very tough game to play and rookies and beginners serve as fodder for the IRS Offer Masters.

Don't give up and don't give in - that's what they want you to do. I believe the new Offer program is designed and managed to return as manner initial Offers as possible to unprepared, unsuspecting, and innocent taxpayers as possible. I believe this is done to confuse them, dishearten them, wear them down, and wear them out to the point where they give up and quit.

So give me a call and see if this program fits your needs. I'll give you all the time you need on the phone.

Email received Monday August 12

Dear Jeff,

I just want to once again say "THANK YOU" for the several hours you gave me of your time. I have had the black cloud of the IRS hanging over me for the past year, during that year many things happened and the CPA I hired just dropped the ball (after incurring thousands of dollars in billable hours). Meanwhile, I was at the end of my rope when I found you on the internet. Not only did you answer my call on a Saturday morning, you spent the time with me and walked me through this painless process. You made something I thought was so complicated, so easy. Also, you made sure I had the forms I needed and you even filled them out with the information I gave you.

I sent in my Amended Offer in Compromise last week (thanks to you) and I am confident of the results being in my favor (thanks to you again!).

I will write to you and let you know the outcome.

Thank you, thank you,

Maria Central Coast of California