Skip to main content

Offer in Compromise 2010 acceptance rate remains under 25%

Offer in Compromise acceptance rate per the 2010 IRS Data Book remains at under 25%.  In the midst of the second greatest economic downturn in the history of the United States the Internal Revenue Service received over 57,000 Offer in Compromises submitted by taxpayers across the country. Of the 57,000 plus Offers that were submitted only 13,866 were approved.

In a time when the unemployment rate hovers around 9% (The official unemployment index, based on a monthly survey of sample households, counts only people who reported looking for work in the past four weeks. It doesn't account for part-time workers who want to work more hours but can't, given the tight job market. And it doesn't include those who have given up trying to find work. When the underemployed and the discouraged are added to the numbers, the unemployment rate rises to 16.6%) one would think that the IRS would be more lenient in accepting these Offers.


 

Rather than cutting back on expenses the IRS continues to gouge taxpayers with ridiculous amounts of penalty and interest (penalties up to 50% of the tax plus a never ending amount of daily compounded interest) and offers taxpayers much too little relief.  Forgot about those snake oil commercials you see on television or solicitations you receive from cold calling telemarketers after you had a federal tax lien placed on you, the Offer in Compromise program is only works for the few. 


It is not that Offer in Compromises can not be done but it is very important  to set your expectations low when submitting one.  In my opinion it does not hurt to ask and if you your offer is denied you can always work out another agreement such as a payment plan (installment agreement) or enter into currently not collectible status.


For more information give me a call toll free at 866-947-7209 or 720-340-4065 local or shoot me an email at nick@patriotresolution.com

Popular posts from this blog

Keys to a Successful Offer in Compromise | Nicholas Hartney, EA | Genesis Tax Consultants, LLC ©

Keys to Unlock a Successful Offer in Compromise ©by Nicholas Hartney, EA © of Genesis Tax Consultants, LLC©*Updated Article 2018 Here
Contact me: Nicholas Hartney Licensed to Represent Taxpayers Before the IRS 
The Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s liability for some amount which is less than the full amount due. The IRS has the authority to settle or compromise federal tax liabilities by accepting less than full payment under certain circumstances.


The taxpayer makes an Offer in Compromise on Form 656. If the IRS accepts the Offer in Compromise, then a contract is formed in which the IRS agrees to cancel the tax debt in return for the payment of the agreed sum. The IRS has a whole set of rules, policies and procedures which govern when it will accept an offer.


Unfortunately, you just don’t offer to pay them 10, 25, or 50 cents on the dollar. They look at your offer, compare it to their guidelines and then either accept it, rej…

2010 IRS Nationwide Tax Forum San Diego Review

The 2010 IRS Nationwide Tax Forum was nicely set up and had some great presentation speakers.


Some of the highlights discussed from the forum:
There were almost one million federal tax liens filed in 2009.The National Taxpayer Advocate's Office discovered that federal tax liens drop your credit score 100 points as soon as they are filed.  The investigation also found that the three major reporting credit agencies, Experian, Equifax, and Transunion, do not remove tax liens for years, if at all, even after the tax has been paid.  The Fair Credit Reporting Act allows the agencies to keep the lien on your credit report for up to 7 years after payment in full.  Regardless of this Act for some reason the investigation found that Equifax keeps liens on your report for up to 15 years, Experian keeps the liens on your report for 10 years, and TransUnion indefinently!  Federal Tax Lien filings went up 475% over the past 10 years.Bankruptcy on back taxes are dischargable in a bankruptcy 3 year…

Preparing IRS Form 1045 Tentative Carryback Application or Carryback Claim Net Operation Loss (NOL)

Preparing Form 1045 to apply a tentative carry-back loss is ridiculously complicated for most people.  Even seasoned tax prepares have difficulties preparing this form. 

If after you filed an amendment to your tax return (Form 1040X) and the IRS sends you a notice requesting that you now file Form 1045 you should consider calling someone for help!  I filed one of these forms back in June for a client of mine and just received notice that it was approved, lowering the taxpayer's liability down from $8492 to $2900.


You may want to contact me on this.


If you wanted to try to tackle the 1045 yourself here are the instructions:

Department of the Treasury
Internal Revenue Service 2010
Instructions for Form 1045
Application for Tentative Refund
Section references are to the Internal Definitions connection with gambling, the racing
Revenue Code unless otherwise noted. of animals, or the on-site viewing of
Eligible loss. For an individual, an such racing, and the portion of any
eli…