OIC Las Vegas (Offer In Compromises)
Speak to a Licensed Tax Professional Today!
Offer in Compromises…
Everybody who has ever had a debt to the IRS wants to find out about the IRS Offer In Compromise program. By now you’ve heard all the commercials with someone promising “pennies on the dollar” for your case. Then you get on the phone a call only to speak to a sales person that has no formal education or training in taxation. Now, more than ever, you need to speak to a licensed tax professional that is admitted to practice before the IRS.
The simple fact is that not everyone is eligible for an Offer in Compromise.
Before the IRS will agree to settle your debt for less than the balance owed they want to know several things about you. Ultimately the IRS will analyze your ability to repay the debt using several variables. Let’s take a look at each of these one by one…
Part I: The Asset Test
The IRS is going to look at all your assets and determine if you have the ability to repay the debt in full. How much money do you have in the bank, equity in your home, automobiles, stocks, bonds, cash liquidation value of assets. In most instances, if the net equity in assets is greater than the amount you owe, the IRS will not grant you an offer in Compromise.
Part II: Remaining Income Test
The IRS wants to know how much remaining (also called disposable) income you have at the end of each month after all your bills have been paid. First, the IRS will determine your monthly gross income from all sources. This includes wages, self employment income, Social Security Income, dividend and interest income, disability income and more.
Your IRS allowable expenses are a little more difficult to calculate. First of all the IRS will grant an allowance for food, clothing, household good and other miscellaneous items. Housing and utility allowances are also limited based on the number of people you claim on your tax return and the county you live in (for example, housing expenses are greater in Newport Beach than in Kansas City). The IRS allows for a automobile expense, health insurance and current withholding taxes. FICA that you are currently paying every month is allowable. Other expenses can be included on a case by case basis which we will discuss in our personal interview with you.
Once the Income and allowable expenses have been determined, the expenses are subtracted from your income to determine your monthly remaining income.
Part III: The Expiration Date of the Debt
All IRS debt has a 10 year expiration from the date of assessment. This is formally known as the Collection Statute Expiration Date (CSED). So, for example, if you filed your 2015 taxes on April 15, 2016 the IRS has 10 years from that date to collect… April 15, 2026.
The longer the IRS has to collect on the debt owed, the more they can expect to collect. It’s reasonable to think that if your debt expires in 60 months the IRS can collect more than if it expires in 6 months.
Putting it all Together
Now that we have all the data collected we can determine how much the IRS will accept to settle the debt using the following formula:
(Remaining Income X Number of Months Remaining to Collect) + Net Liquidated Value of Assets
Sound Confusing? Let’s go through a real life example:
Amount Owed to the IRS: $87,000
Gross Monthly Income: $6,500
IRS Allowable Expenses: $6,150
Remaining Monthly Income: $350
Months Until CSED: 54
Net Liquidated Asset Value: $12,000
IRS Offer: ($350 X 54) + $12,000 = $30,900
Reasonable collection potential in this example is $30,900 on the current balance of $87,000.
If the total is greater than the amount you owe, the IRS will NOT approve you for an offer in Compromise.
For more information on the offer in compromise program visit www.irs.gov
“Specializing in Honest, Ethical Tax Representation in greater Las Vegas metropolitan area.”
We Take a Great Amount of Pride in What We Do
My name is David Krausse. I am a licensed Enrolled Agent, admitted to practice before the IRS. I am an advocate for taxpayer’s rights and believe that everyone deserves a second chance. I work hard to represent the taxpayers of Las Vegas. If you have a tax problem and need relief from the IRS, feel free to call me on my personal cell phone number at (714) 876-4702, our office at (877) 782-9383 or my personal email at davidk@patriottaxpros.com
Our Commitment to Our Customers
We understand that our customers are the life blood of our company. It is our goal to become the premier tax resolution firm throughout California. We intend to do this by providing excellent results for our clients and unparalleled customer service at an affordable price. Our reputation as the premier firm will continue to grow with every great customer experience we provide.
Your tax resolution case will be handled by trained tax professionals 100% of the time because every employee at Patriot Tax Professions is licensed and admitted to practice before the IRS. All of our employees have a formal education in taxation and have passed all required licensing examinations to practice before the IRS. Additionally, all employees have met the ethical standards required for licensing.
We work with you on a one-on-one basis from start to completion of your case. You will never speak to a “salesman” that really doesn’t know anything about tax resolution or the inner-workings of the IRS and that will tell you anything you want to hear just to make a sale. Here at Patriot Tax Professionals, ethics and honesty are our priority.
At Patriot Tax Professionals you have the assurance of knowing that every single person that handles your case is licensed with years of professional tax resolution experience working on tax cases similar to yours.
Thank you for choosing Patriot Tax Professionals.
David Krausse
Enrolled Agent, Admitted to Practice before the IRS
President
Patriot Tax Professionals
