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Owe 60,000 back taxes should I try offer in compromise,

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Owe 60,000 back taxes...

Owe 60,000 back taxes should I try offer in compromise

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Illinois

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From me?

Submitted: 11 months ago.Category: Tax
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Answered in 4 minutes by:
9/16/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,912
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

HI, MY NAME’S LANE - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

...

That's very possibly a good route. A successful offer in compromise has as much to do with your ability, ever, to get the tax debt paid, as it does with the amount owed.

....

The computation is really formulaic... coming down to something called RCP (Reasonable Collection Potential) ... that amount that IRS say, as per that formula, is an amount that you SHOULD be able to pay (Based on your income, assets, and other debt).

...

here's how IRS puts it:

...

"An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

We generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. "

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago

I can help you with this ... I do these for clients. What you MAY want to consider first, is going to IRS' pre-qualifier, and see if it make sense:

...

https://irs.treasury.gov/oic_pre_qualifier/

...

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

I hope that you’ll rate me based on my accuracy and thoroughness, rather than any good news/bad news content.

That’s the only way JustAnswer.com will compensate me for the work here.

Thanks,

Lane

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago

Listen ... I still don't see you coming back into the chat here.

...

It's 10:30 here on the east coast. Signing off for the evening

...

But I'll be checking back in all day tomorrow.

...

Lane

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