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
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