Offer in Compromise with the IRS

Quite often, taxpayers find themselves in situations where their IRS back taxes have reached a point where pay back seems insurmountable based on current household income. Assets are minimal and with the most of the monthly income going towards regular and continuous expenses, the question becomes whether any of the liability can be relieved. The short answer is yes. 

Internal Revenue Manual (IRM) Section 5.8 allows for settlement via offers in compromise. Largely based on true numbers of a taxpayer’s income, expenses and asset values, attorneys and other certified enrolled agents can negotiate settlements in a matter of months. The process begins with our attorneys and staff collecting financial information that is protected by attorney-client privilege. We’ll look at all options but also explore the possibility of whether an offer is possible and, if so, an estimate of what we believe the IRS is willing to accept. IRM 5.8.5 details how the analysis takes place, which our attorneys have mastered. 

In the event IRS offer unit does not agree with our analysis, we have Appeal rights which our attorneys file daily. This gives us a second chance to negotiate the taxpayer’s position with the Office of Appeals, whose officers are of higher stature within the IRS and who understand tax law at a higher level, allowing for a more useful application of our knowledge to reach our clients’ goals. 

Filing an offer in compromise will often fight a tax levy.  Lionsgate Tax Defenders has tremendous experience in determining a taxpayer’s eligibility for an offer in compromise and also has tremendous success in negotiating our offers in compromise we submit for our clients.