Offer in Compromise Saves Client Over $95,000!
The Offer in Compromise is an excellent tax settlement option for a delinquent taxpayer who meets the specific qualifying criteria set forth by the IRS. Such was the case for Professional Tax Resolution client, Mr. F. Not only did he have an outstanding tax liability, but the specific set of financial circumstances establishing his inability to pay the full amount of his back tax balance fell within the Offer in Compromise parameters set by the IRS.
Mr. F, a Hollywood voice over actor, was experiencing some health issues that were having a negative effect on his ability to earn a livelihood. As a result of his constricted financial situation, he was unable to meet his monthly financial responsibilities and began ignoring his income tax obligations as well.
By the time he contacted Professional Tax Resolution, he had failed to file income tax returns for the previous several years and had accumulated a back tax balance of over $101,000! At a loss as to how to climb out of this deep financial hole, he was hopeful that a tax settlement professional could provide him with a viable solution. Our tax resolution team immediately set to work filing Mr. F’s back tax returns and doing a complete analysis of his financial situation. Once we had an accurate accounting of the amount of his tax debt as well as his ability to pay it, we determined that the best tax settlement option for his financial situation was an IRS Offer in Compromise. Following this conclusion, our tax settlement professionals completed and submitted an Offer in Compromise application, proposing a settlement amount that we felt would be accepted by the IRS. As is always the case, the amount was calculated based on the amount of Mr. F’s back tax balance together with his specific set of financial circumstances. After a short period of negotiation, the IRS accepted Mr. F’s proposal, resolving his $101,000 back tax balance for only $3600.
This settlement amount represents just little over 3.5 % of his original tax liability! As exemplified by the case of Mr. F, the tax specialists at Professional Tax Resolution will always begin the tax settlement process with an accurate determination of the client’s back tax balance together with a thorough analysis their financial situation. Following that, they will select the best tax settlement option available and follow the tax resolution process through to a final solution. All the while, they will communicate with the IRS on the client’s behalf and protect their property and accounts from IRS levies and liens.