Offer In Compromise Information Provided by Leading Tax Help Firm, Lothamer P.C.
May 27, 2011 (PRLEAP.COM) Business NewsLANSING, Mich.-Lothamer Tax Resolution knows many people are familiar with the IRS Offer in Compromise program, which allows taxpayers to get a "clean slate" by settling their back tax debt, often at pennies on the dollar. This program allows thousands of people each year to rid themselves of debt in which they had never been able to pay off.
What many people fail to realize is there are different types of Offers in Compromise. Experienced tax help firms, much like Lothamer, review a taxpayer's situation and history to come up with a personalized strategy, determining which type of Offer is best suited to a specific situation.
The most common type of OIC is based on the ability to pay. A taxpayer or their representative provides evidence to the IRS that the individual could never reasonably be able to pay off their debt. In return, the IRS agrees to accept a smaller amount and write off the remaining amount owed. There are many factors taken into account when calculating the smaller amount accepted, such as employment, income, expenses, assets, dependents, spousal income, and even the taxpayer's age.
A complex set of calculations are what determine the tax payer's offer to the IRS. The tax payer must make their offer and for every dollar they are off in these calculations, they are charged an additional $14 in the final offer. For example, if a person missed or miscalculated $300 worth of eligible expenses, their offer would be $4,200.00 higher.
Because of this stipulation, many people find they actually save money by hiring a professional tax resolution specialist who, because of their experience, gets their client the lowest possible offer. Additionally, hiring a professional to calculate an offer helps to relieve the tax payer's mental stress of dealing with the IRS firsthand. Many Lothamer Tax Resolution clients experience great relief upon signing up for services. Knowing their case is in the hands of professionals and they will never have to directly speak to the IRS provides comfort and security.
If you have an IRS debt that you think you will never be able to pay off, consider requesting a free consultation with the CPAs and Attorneys of Lothamer Tax Resolution.