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| Offer in Compromise This is a very hot topic in the field of taxpayer representation. Many firms advertise settling for "pennies on the dollar". While this statement may be true, it does not illustrate the true negotiation of an Offer in Compromise.
The Internal Revenue Service Offer in Compromise procedure is based upon your current (and future) ability to pay your delinquent taxes. Our analysis starts with your monthly budget, calculated as if we were negotiating an installment agreement. We determine what you can afford to pay each month, and that amount is factored into a formula used by the IRS to determine the current value of your potential monthly payment. Added to the above computation is your equity in any assets which you own. In most circumstances this will include your house and vehicle(s). The calculation is the same whether you owe the IRS $10,000, $100,000 or $1,000,000. Our success rate for accepted Offers in Compromise is exceptional. This is because we fully analyze your financial situation BEFORE submitting the IRS paperwork. We do not submit frivolous offers, and therefore we have a very high acceptance rate.
The IRS uses experienced auditors and tax collectors.
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