Offer in Compromise
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Do you need to settle your IRS debt? Have us file an Offer in Compromise for you, and at reasonable rates!

The Tax Increase Prevention and Reconciliation Act of 2005 was signed into law on May 17, 2006. Section 509 of this law creates significant changes to the IRS Offer in Compromise (OIC) program by amending IRC 7122. 

Taxpayers filing offers (excluding doubt as to liability offers) will have to specify whether they are filing a lump sum or "periodic payment" offer.  

The new IRC 7122(c)(1)(A) subsection requires that a taxpayer filing a lump sum offer must pay 20 percent of the offer amount with the application. A lump sum offer means any offer of payments made in five or fewer installments.

The new IRC 7122(c)(1)(B) subsection requires that a taxpayer filing a periodic payment offer pay the first proposed installment payment with the offer application and pay additional installments while the IRS is evaluating the offer. A periodic payment offer means any offer of payments made in six or more installments. 

Here is what the IRS has to say about an offer's payment plans:

Offer in Compromise (OIC) Payment Plans
Taxpayers are expected to pay the entire amount offered in as short a time as possible. Acceptable offer terms are determined by the offer investigator and are not limited to the proposal of the taxpayer. The amounts and due dates of payments must be specified on Form 656. As a result of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), there are three types of payment terms the IRS and the taxpayer may agree to: Lump sum cash offer – An offer in which the offer amount must be paid in five or fewer installments upon written notice of acceptance. Twenty percent of the total amount of the offer must be paid with the Form 656, Offer in Compromise. If the installments will be paid in five months or less, the taxpayer should offer the realizable value of his assets plus the total that could be collected over 48 months of payments (or the remainder of the statutory period for collection, whichever is less). If the installment payments will be paid in more than five months, the taxpayer should offer the realizable value of his assets plus the total that could be collected over 60 months of payments (or the remainder of the statutory period for collection, whichever is less).   Note: Realizable value is defined as the quick sale value (amount that a taxpayer could reasonably expect from the sale of an asset if sold quickly, typically in 90 days or less) minus what the taxpayer owes to a secured creditor. The creditor must have priority over a filed Notice of Federal Tax Lien before the IRS will allow a subtraction from the asset’s value. Short Term Periodic Payment Offer – An offer in which the taxpayer must submit the first payment with the offer and must continue to make regular payments during the offer investigation. The offer amount must be paid within 24 months from the date the IRS receives Form 656, Offer in Compromise. The offer amount must reflect the taxpayer’s realizable value of assets plus the amount that could be collected over 60 months of payments (or the remainder of the statutory period of collection, whichever is less). Failure to make the regular payments during the offer investigation would cause the offer to be withdrawn. Deferred Periodic Payment Offer – An offer in which the amount must be paid over the remaining statutory period for collecting the tax. As with the short term periodic payment offer, the taxpayer must submit the first payment along with Form 656, Offer in Compromise and must continue to make regular payments during the offer investigation. The offer amount must reflect the taxpayer’s realizable value on assets plus the amount that could be collected through monthly payments during the remaining life of the collection statute. Failure to make the regular payments during the offer investigation will cause the offer to be withdrawn. Taxpayers may designate in writing how the IRS should apply the offer payments (e.g. lump sum cash, short term, deferred periodic) by specifying the type of tax, period or year, penalty, and interest due. Without a written designation request, the IRS will apply the payments in the best interest of the government. The $150 application fee reduces the assessed tax or other amounts due and cannot be designated by the taxpayer. All offer payments (e.g. lump sum, short term, deferred periodic) are considered “payments on tax” and are not refundable deposits regardless of whether the IRS declares the offer not processable or later returns, rejects, withdraws, or terminates the offer as a result of its investigation. When this happens, the IRS will apply the payment(s) to the taxpayer’s outstanding tax liability.

The following are my services for IRS help:

1. Unfiled Tax Returns:  If you haven’t filed a tax return for one year, two years or ten years, we can help.  If you lost your records, no problem we can obtain them from the IRS.  So file your unfiled tax returns today.
2. IRS Audit: Did you receive a love notice from the IRS that you are under an IRS audit for one year, two years, or multiple years.  Let us know, we can represent you and help you with your IRS audit.
3. IRS Collection Activities: If you have an IRS wage garnishment a levy on your bank account, in need to establish a monthly payment with the IRS on IRS debt, or if you need to reduce your debt by filling an offer in compromise, we can help you with your IRS problem.
4. IRS Appeals: If your IRS Audit didn't go the way you wanted it to, call us, we might be able to appeal the auditor's decision.
5. IRS Offer In Compromise: Let's settle your IRS debt for pennies on a dollar.
6. IRS Employee Audit: Also known as the 100% penalty against reposible individuals such as Corporate officers.