Open 7 Days 586-489-5553

Bill Kirkaldy, Enrolled Agent

Offer in Compromise

If you are receiving IRS collection notices, getting your wages garnished, having a lien in places on your home, or the IRS is taking money out your bank account, then give us a call and let us help you end your IRS NIGHTMARE! Let us help you get your life back, we know how stressful it can be.

Don't call a national tax resolution firm (the ones you hear on tv or on the radio), they will charge you between $3,000 - $5,000 to handle your case. Those firms will sell you on how to settle your tax debt for "pennies on the dollar", the truth is many people simply do not qualify for the "Offer in Compromise" program. It's a way for them to lure you in. As a local company, we can sit down and have a face-to-face conversation and we can discuss your options for FREE.

What are the National and Local Standards, how are they used for an OIC and where can they be found?
The National Standards are the amounts allowed by IRS for food, clothing and other items. You are allowed the total National Standard amounts for your family size and income level, without the IRS questioning the amount you actually spend. Note: Alaska and Hawaii have their own National Standards tables. The Local Standards are the amounts allowed for housing and utilities and transportation. The Local Standards are limited to the amounts you actually spend per month or the standard amounts, whichever is less. National and local standards are guidelines. If the IRS determines that the standards would not cover basic living expenses in a particular case, then deviations are allowed.

Do I need to keep paying my Installment agreement while my offer is being processed?
No. If you have an installment agreement in place, you do not have to make payments while your offer is being processed. If your offer is not accepted and you have not incurred any additional tax debt, your installment agreement with the IRS will be reinstated with no additional fee.

Will a lien be filed?
During the offer process the IRS may file a Notice of Federal Tax Lien (NFTL). This is a public notice to creditors that you owe a tax debt. However, an NFTL will not normally be filed until a final decision has been made on your offer.

Can the lien on my account be removed?
The lien will be released if your offer is accepted and the agreed offer amount has been paid in full.

Can the levy on my account be released?
There is no requirement to release a levy that was served prior to the offer submission. Your circumstances will be considered when determining to release or keep the levy in place while the offer is pending. We may be able to remove the levy if it was placed on your account after the IRS received date of the offer in compromise.

I'm currently in bankruptcy, can I file an offer?
No, the IRS is unable to consider an offer while there is an open bankruptcy; once it is discharged and closed, we can file an offer.

Do I need to file all required tax returns before submitting an offer?

Do I need to be up to date with my estimated tax payments before submitting an offer?

Do I need to be up to date with my federal tax deposits before submitting an offer?

Where will my payments be applied?
You may designate which tax debt you would like to apply your offer payment(s) to in writing when the offer is submitted or when the payment is made. You may not designate the application fee. In the absence of any written designation request, the IRS will apply the offer payment(s) in the best interest of the government.

What method of payment does the IRS accept?
A check or money order made payable to the United States Treasury.

Will I get my offer payments back if my offer is not accepted?
No. Offer payments that must be sent with the offer are not refundable.

Why didn’t I receive my refund?
As part of the accepted offer agreement the IRS will keep any refund, including interest, for taxes due through the calendar year that the offer was accepted. For example, if your offer is accepted in 2016 and you are due a refund when you file your 2016 Form 1040 on April 15, 2017, the IRS will apply your refund to your total tax debt. This refund will not be counted as a payment toward your accepted offer amount.

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