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Tax Relief Offer in Compromise PDF Print E-mail


An IRS Offer in Compromise ( also known as an OIC ) is an excellent way to receive IRS Tax Relief and Settle your IRS Tax Debt with the IRS for much LESS than what you currently owe. This form of IRS Tax Relief Settlement of  your IRS Back Tax has been commonly known, in the past, as "pennies on the dollar".


IRS OFFER IN COMPROMISE - IRS TAX SETTLEMENT - IRS TAX RELIEF


DWK TAX GROUP IRS OFFER IN COMPROMISE FLAT FEE:    $1,950.00


Our latest information ( 11/2009 ) from the IRS is that an IRS Offer in Compromise is taking the IRS 303 days to process an Offer in Compromise once your Offer in Compromise is submitted.

Stop an IRS Wage Levy / IRS Wage Garnishment against your assets and paycheck.

Stop the IRS from Executing an IRS Wage Levy / IRS Wage Garnishment against your assets and paycheck.

Stop the IRS from an IRS Wage Levy against your Social Security or Social Security Disability (SSDI) benefit. 

We will settle your IRS Tax Debt for you.

We will reduce your IRS Tax Debt by receiving real IRS Tax Help from DWK Tax Group.


Call DWK Tax Group for a free consultation to solve your IRS Tax problem and receive real IRS Tax help:
1-866-226-6102  "Se Habla Espanol"

REAL IRS TAX HELP AND  IRS TAX RELIEF THROUGH AN IRS OFFER IN COMPROMISE: GUIDELINES.
If your present economic situation is such that you are contemplating Bankruptcy, it may very well be in your best interest to do an IRS Offer and Compromise first and then handle your other creditors later in a Bankruptcy Petition.

Filing bankruptcy gives additional time for the IRS to collect the IRS Debt. If you go into bankruptcy and emerge from the process still owing the IRS, the IRS gains extra time to collect the balance. This could happen if you had some, but not all, of your taxes erased in a Chapter 7. As you know, the IRS normally has a total of ten years to collect taxes, penalties and interest. Once a bankruptcy case is over, the IRS gets whatever time remained on the original ten years, plus the time the bankruptcy case was pending. plus an additional six months. (Chapter 7's usually take about 3 to 6 months, start to finish).

Another unavoidable consequence of bankruptcy is it remains on your credit record for ten years. However, if IRS Tax Lien notices have been filed by the IRS or state tax agency, the credit harm has already been done.

Taxpayers seeking IRS Tax Relief, who do not have enough assets to sell or liquidate to satisfy your back IRS Debt, should seriously look at the IRS Offer in Compromise program. 

At least one of three conditions must be met to qualify a taxpayer for IRS Debt Relief consideration of an IRS Offer in Compromise (OIC) Tax Settlement:

  • Doubt as to Collectibility — You, the Tax Debtor, can show that the IRS Tax Debt is likely uncollectable in full by the IRS under any circumstances. Doubt exists that you, the taxpayer, could ever pay the full amount of your tax liability owed within the remainder of the statutory period for collection.
  • Example: You, the taxpayer, owes $20,000 for unpaid tax liabilities and agrees that your IRS Tax Debt is correct. Your monthly income does not meet your necessary living expenses. You do not own any real property (or have any equity in any real property) and you do not have the ability to fully pay the liability now or through monthly installment payments.
  • Doubt as to Liability — You, the Tax Debtor, can show reason for doubt that the assessed tax liability is correct. A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability Offer in Compromise include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayer’s evidence or (3) the taxpayer has new evidence.
  • Example: The taxpayer was vice president of a corporation from 2004-2005. In 2006, the corporation accrued unpaid payroll taxes and  the taxpayer was assessed a trust fund recovery penalty as a responsible party of the corporation. The taxpayer was no longer a corporate officer and had resigned from the corporation on 12/31/2005.  Since the taxpayer had resigned prior to the payroll taxes accruing and was not contacted prior to the assessment, there is legitimate doubt that the assessed tax liability is correct.
  • Effective Tax Administration — You, the Tax Debtor, do not contest your IRS Tax Debt liability or collectibility but can demonstrate extenuating or special circumstances that the collection of your IRS Tax Debt would "create an economic hardship or would be unfair and inequitable." This IRS Offer in Compromise (OIC) program is available for you, the taxpayer, but is primarily used by individuals that are elderly (Social Security), disabled ( Social Security Disability / SSDI), or have special extenuating circumstances.
  • Example: You have the assets sufficient to satisfy your IRS Tax Debt liability and you provide full time care and assistance to a dependent child, or parent  who has a serious long-term illness. It is expected that you, the taxpayer, will need to use the equity in assets to provide for adequate basic living expenses and medical care for your elderly parent or child. There is no doubt that the tax is correct.

    An IRS Offer in Compromise (OIC) will have no effect upon a IRS Tax Lien. The IRS Tax Lien will remain in effect until your IRS Offer in Compromise is accepted by the IRS and the full amount of the Offer in Compromise (OIC) has been paid in full.An Offer in Compromise will stop your IRS Wage Garnishment / IRS Wage Levy / IRS Bank Levy under section 301.7122(g)(1) of the US Federal Tax Regulations. That regulation states that the IRS will not Execute an IRS Wage Levy / IRS Wage Garnishment upon your wages / paycheck or property while a valid Offer in Compromise is pending and, if rejected, for thirty days after an Offer in Compromise rejection. If you, the taxpayer appeal the rejection, the IRS cannot Execute an IRS Wage Levy / IRS Wage Garnishment while the appeals process is ongoing.

Under Federal Tax Regulations,

  1. The IRS will not execute an IRS Wage Levy/ IRS Wage Garnishment or Levy against the property or rights to property of a tax payer who submits and Offer in Compromise (OIC).
  2. The IRS will not collect the liability that is the subject of the IRS Offer in compromise (OIC) during the period the Offer in Compromise(OIC) is pending.
  3. The IRS will not proceed with collections for 30 days immediately following the rejection of the IRS Offer in Compromise, and for any period when a timely filed appeal from the rejection is being considered by Appeals.

Once the IRS decides that your IRS Offer in Compromise (OIC) is processable for IRS Tax Relief and that the IRS Offer in Compromise includes all the paperwork and forms properly filled out, the IRS must stop IRS Wage Garnishment / IRS Wage Levy / IRS Bank Levy actions under §6331.

On the Other Hand:

If your IRS Offer in Compromise is missing documents, forms or information, the IRS can (and the IRS will ) return the paperwork to you as un-processable, and the IRS can (and the IRS will) then proceed with an IRS Wage Garnishment or IRS Wage Levy of your wages / paycheck / property. In other words, the IRS will try to discourage and confuse you.

Time and time again, we have seen the IRS Execute an IRS Wage Garnishment / IRS Wage Levy after a Payment Plan / Installment Agreement is in place. The IRS will claim that it is an error. If our clients did not have DWK to represent them, the IRS would have taken their Wages / Paycheck and/or Bank Account again

All the more reason, when seeking IRS Tax Relief, to have highly skilled IRS Tax Attorneys represent you.

If you prepare an IRS Offer in Compromise yourself, you have more than an 90% chance of failure. The IRS will not tell you why your paperwork was rejected. The IRS will reinstitute collection action against you as quickly as the IRS is allowed by statute (usually 30 days). IRS Penalties and Interest will continue to be added (we call call it "piling on") to your IRS Tax debt. 

Preparing your own IRS Offer in Compromise and then having the IRS approve your IRS Offer in Compromise is easier said than done, especially for someone who is not familiar with the specific and extrodinarily detailed method the IRS makes in their calculations to determine whether or not you can make payments on your IRS Tax Debt and how much you have to pay the IRS.

The "Processability" Determination.
After submitting the required forms, the first obstacle is the "Processability" determination. To control the workload of the few Revenue Officers in each district trained as "offer examiners," an Offer in Compromise package is given an initial screening to determine if it warrants further consideration. The large number of Offer in Compromise submissions which the IRS sends back as unprocessable has been a source of great frustration. The IRS may assert that your Offer in Compromise was not presented in a processable condition because you didn't understand the Offer in Compromise process, or you didn't fill out the required forms in accordance with the instructions, or you didn't provide the necessary supporting documentation. You may suspect, however, that the IRS uses "processability" as a cover to reject your Offer in Compromise on its merits.

This is the "Downside" of Preparing your own IRS Offer in Compromise and being Rejected:

When you filed  your "rejected paperwork", you just gave the IRS a roadmap to seizing your assets. Before you know it, you will have an IRS Wage Levy / IRS Wage Garnishment. How convenient for the IRS to know everything about your employment, your spouses employment, your bank information, finances and you just happen to have REJECTED PAPERWORK.

Filing the IRS Offer in Compromise.
Once the IRS Offer in Compromise and the related Collection Information Statement and supporting documents are assembled and properly organized, the Offer in Compromise package is filed with the appropriate IRS office. In "theory", your Offer in Compromise would be handled by one of  two IRS Service Centers located in New York and Tennessee more quickly, but, the process is painfully slow, and often updated financial information must be submitted when the IRS Offer in Compromise package is finally reviewed by the IRS. Upon receiving questions or a request for updated information, we would respond immediately to the IRS by gathering and sending whatever new data is needed, or answering any questions the Offer in Compromise examiner may have.

(Please note that about 25% of all Offer in Compromise submissions are rejected simply because taxpayers fail to timely respond to the IRS's requests for additional information.

Miss a deadline and you are back to Step One.

Paying Your IRS Offer in Compromise.
In general, a taxpayer must submit a $150 application fee and initial payment along with the Form 656, Offer in Compromise.  Taxpayers may chose to pay their offer in compromise in one of three payment options:

1. Lump Sum Cash Offer - Payable in non-refundable installments, the offer amount must be paid in five or fewer installments upon written notice of acceptance.  A non-refundable payment of 20 percent of the offer amount along with the $150 application fee is due upon filing the Form 656.

If your IRS Offer in Compromise will be paid in 5 or fewer installments in 5 months or less, the Offer in Compromise amount must include the realizable value of assets plus the amount that could be collected over 48 months of payments or the time remaining on the statute, whichever is less.

If your IRS Offer in Compromise will be paid in 5 or fewer installments in more than 5 months and within 24 months, the offer amount must include the realizable value of assets plus the amount that could be collected over 60 months of payments, or the time remaining on the statute, whichever is less.

If your IRS Offer in Compromise will be paid in 5 or fewer installments in more than 24 months, the offer amount must include the realizable value of assets plus the amount that could be collected over the time remaining on the statute.

2. Short Term Periodic Payment Offer - Payable in non-refundable installments; the Offer in Compromise amount must be paid within 24 months of the date the IRS received the Offer in Compromise. The first payment and the $150 application fee are due upon filing the Form 656. Regular payments must be made during the Offer in Compromise investigation.

Your IRS Offer in Compromise amount must include the realizable value of assets plus the total amount the IRS could collect over 60 months of payments or the remainder of the statutory period for collection, whichever is less.

3. Deferred Periodic Payment Offer - Payable in non-refundable installments; the Offer in Compromise amount must be paid over the remaining statutory period for collecting the tax. The first payment and the $150 application fee are due upon filing the Form 656. Regular payments must be made during the investigation.

Your IRS Offer in Compromise amount must include the realizable value of assets plus the total amount the IRS could collect through monthly payments during the remaining life of the statutory period for collection.

Low Income Exemption and Guidelines:
The application fee is waived if your  (not a corporation, partnership or other entity)  income falls at or below IRS Low Income Guidelines. Qualifying taxpayers are also exempt from making any OIC payments while you Offer in Compromise is being investigated.

Five Year Compliance
If your IRS Offer in Compromise is accepted, you must timely file all tax returns and timely pay all tax for five years or until the offered amount is paid in full, whichever period is longer.  Failure to adhere to these terms will result in default of your IRS Offer in Compromise and the IRS may then collect the amounts originally owed plus penalties and interest.

(READ BELOW. THIS IS ONE OF THE MANY REASONS WHY YOU NEED TO HAVE REPRESENTATION)

The IRS is not bound by either the Offer in Compromise amount or the terms proposed by you, the taxpayer.  The OIC investigator may try and negotiate a different Offer in Compromise amount and terms, when appropriate.  The OIC investigator may try to intimate that your proposed Offer in Compromise amount is too low or the payment terms are too protracted to recommend acceptance. In this situation, the OIC investigator may advise ( A BETTER WORD IS: INTIMIDATE ) the taxpayer as to what larger amount or different terms would likely be recommended for acceptance.

THE OFFER IN COMPROMISE (OIC) INVESTIGATOR WILL TRY AND HAVE YOU AGREE TO AN AMOUNT THAT IS LARGER THAN WHAT YOUR OFFER IN COMPROMISE SHOULD BE. THE IRS IS A COLLECTION AGENCY AND THEIR JOB IS COLLECT AS MUCH MONEY AS THEY CAN.

In the last published IRS statistics, the IRS reports that the average discount on an accepted IRS Offer in Compromise was 88% (only 12 cents on the dollar was paid by Americans with an accepted IRS Offer in Compromise (OIC), and that the average acceptance rate was 47.6%. Remember, if you prepare your own IRS Offer in Compromise, you have a 90% chance of failing.

Given the savings possibilities on your accepted IRS Offer in Compromise (OIC), the determined and diligent team of Tax Attorneys at DWK TAX GROUP specializes in the IRS Offer in Compromise program as well as the Release of your IRS Wage Garnishment / IRS Wage Levy.

DWK Tax will not accept your Tax Case for an Offer in Compromise unless you are eligible and qualified.

We, at DWK TAX GROUP, know that the  IRS will accept an Offer in Compromise to settle unpaid accounts for less than the amount owed when there is doubt that the liability can be collected in full and the amount of your IRS Offer in Compromise reasonably reflects collection potential.

It is important to emphasize, for example, the fact that the Congress of the United States told the IRS to have a liberal acceptance policy in processing IRS Offer in Compromise cases and providing true Tax Relief.

DWK will only prepare your IRS Offer in Compromise if you are Qualified and Eligible for Tax Relief.

Have a DWK Tax Attorney represent you.
It is time for you to get out from under the IRS Tax Debt that you have been carrying all these years and receive some IRS Tax Relief help from DWK Tax Group.

Our Tax Attorneys will File a Form 2848 ( Power of Attorney ) and get you a reprieve while we gather the necessary information to move your Case forward. Your IRS Offer in Compromise (OIC) will be completed effeciently and correctly. 

DWK TAX RELIEF FEE FOR AN IRS OFFER IN COMPROMISE: $1,950.00.

Call DWK Tax Group for IRS Real Help:  CALL 1-866-226-6102  "Se Habla Espanol"



3 Steps: Offer and Compromise

Step 1: Contact DWK tax group - call (1-866-226-6102 "Se Habla Espanol"

Step 2: A Free Consultation - IRS tax relief
DWK TAX GROUP is the Nationwide Internet Tax Resolution Company.

A Senior Tax Analyst will review your entire financial information and complete a thorough, FREE and confidential tax analysis to determine which Tax Relief program will be best for you. We need to know your unique set of circumstances. DWK TAX will provide you with the determined and diligent Tax representation you deserve. DWK TAX GROUP will determine, from the information you provided during our consultation, if you are qualified and eligible for an IRS Offer in Compromise. DWK TAX will look at every avenue available to reduce your IRS Tax Debt and provide you with IRS Tax Relief.

Take the 1st step. Contact DWK TAX GROUP today.

DWK TAX will find the right Tax Relief solution for you.

Step 3: Have your tax debt settled now
Once you become a client, DWK Tax Group will communicate and correspond directly with the IRS and/or your State Tax Agency. If your wages / pay check are being garnished, DWK TAX Guarantees to Stop / Release your IRS Wage Garnishment / IRS Wage Levy in 1 to 5 business days. You will no longer have to speak to any tax agency regarding your IRS tax debt. We will represent you before the IRS and/or State immediately.

Take the 1st Step. Contact DWK TAX today.

Your Tax Relief case will be assigned to a team led by a highly skilled Tax Attorney. DWK TAX GROUP has over 45 years of combined experience and DWK TAX will provide you with the determined and diligent Tax Relief Representation you deserve.

SENIOR DISCOUNTS.

AFFORDABLE PAYMENT PLANS AVAILABLE FOR YOU.

SETTLE YOUR IRS DEBT - IRS OFFER IN COMPROMISE

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