As published in the Winter Park/Maitland Observer, Thursday Jan. 3, 2012 Edition Offers... Read More »
Articles in category 'Offers in Compromise'
IRS Makes it Easier to Settle Tax Debts
Linda Beale reports that the IRS is making the Offer in Compromise process easier for taxpayers: The IRS has announced more flexible offer in compromise terms, in an effort to make it easier for financially distressed taxpayers to get a “fresh start” by erasing their tax liabilities, and may also result in less time taken…
Read Full Article Categorized in: IRS Procedure, Offers in CompromiseJK Harris Filing for Bankruptcy
Joe Kristan reports that J.K. Harris, the most egregious of the many penny-on-the-dollar tax resolution companies, is about to file for bankruptcy protection to forestall a government seizure of it’s business: One of the late-night tax settlement outfits has found a way to make good on its “pennies on the dollars” pitch. The Charleston Post…
Read Full Article Categorized in: News, Offers in Compromise, Tax CollectionsOffer in Compromise Questionnaire
Offers in Compromise (IRS settlements) are very difficult to get, but the IRS does grant them. I put together this short questionnaire for taxpayers to use to determine whether or not they qualify for an IRS settlement. Form 656 is the Offer in Compromise form. On it’s face the form seems simple enough, but if you read…
Read Full Article Categorized in: Offers in CompromiseTax Lady v Lady Justice
Russ Fox has the latest on Tax Lady Roni Deutch’s brush up with Lady Justice: “Tax Lady” Roni Deutch appeared in court on Friday; she pleaded not guilty to contempt of court charges in Sacramento. She’s accused of violating court orders by shredding 2.7 million documents in violation of a court order. Meanwhile, the company she…
Read Full Article Categorized in: News, Offers in Compromise, Tax CrimesCalifornia Sues Roni Deutch for “Heartless” Pennies on the Dollar Tax Scheme
If you’re an insomniac you may recognize Roni Deutch from her ubiquitous late night infomercials promising taxpayers pennies on the dollar settlements with the IRS: Joe Kristan writes about yet another lawsuit against Deutch: California’s Aspiring GovernorAttorney General Jerry Brown has sued Attorney Roni Deutch, who blogs as the “Tax Lady,” for “swindling” taxpayers who hire her to get…
Read Full Article Categorized in: News, Offers in Compromise, Regulation of Tax PreparersOffer in Compromise Warning
Kate Smith of Kiplinger.com writes in Pennies on the Dollar Tax Relief Offers Should Be Scrutinized: Tax troubles keeping you up at night? Then you’ve no doubt seen your fair share of late-night TV pitches to settle your tax debts for less than you owe. Such “pennies on the dollar” come-ons, regardless of the source,…
Read Full Article Categorized in: Offers in CompromiseWarning to Sheep: IRS Invites Settlement Offers Again
About a year ago we questioned the sincerity of the IRS’s Offer in Compromise program in a post titled Is IRS Offer in Compromise Program a Sham? We said then that it was our experience and the experience of other tax professionals that the program as currently operated was someone of a bait and switch: The IRS entices taxpayers to…
Read Full Article Categorized in: Announcements, Offers in CompromiseIRS Settlements Might Become Less Costly
Tax lawyer Mitchell Port of California Tax Attorney Blog notes that Congress is considering passing a bill that will eliminate the 20% downpayment requirement for IRS settlement offers: To submit an Offer In Compromise (OIC) with the Internal Revenue Service in order to pay pennies on the dollar, a nonrefundable 20% downpayment is required. Combined…
Read Full Article Categorized in: Legislative Watch, Offers in CompromiseTax Court Update – June 4, 2009 – Failure to Provide Finanical Statements
Thomas B. and Labelle B. Lance v Commissioner of Internal Revenue- In this case the taxpayers requested an offer in compromise on the basis of doubt as to collectibility or, in the alternative, an installment payment arrangement, but refused to provide to the IRS officer a completed collection information statement. The IRS officer did not give the…
Read Full Article Categorized in: Court Cases, IRS Installment Agreements, Offers in CompromiseIs IRS Offer in Compromise Program a Sham?
The National Law Journal has a great article titled Attorneys Angered Over Lack of IRS Aid which tells about the IRS’s failure to efficiently and properly evaluate and process Offers in Compromise and Partial Payment Installment Plans: At the start of the new year, the Internal Revenue Service announced steps to help struggling taxpayers buffeted by…
Read Full Article Categorized in: IRS Installment Agreements, Offers in Compromise, Taxpayer AdvocatePreparing the IRS Financial Statement: Do’s and Don’ts
If you can’t pay your tax debt in full, you will have to completely disclose your financial circumstances to the IRS. There is no way to avoid this disclosure requirement other than making full payment. A taxpayer’s financial information is provided on one or more of the following prescribed IRS forms: IRS Form Number Description…
Read Full Article Categorized in: IRS Installment Agreements, Offers in Compromise, Tax CollectionsTaxpayer Advocate’s Recommendation: Go Easier on Taxpayers Experiencing Economic Hardship
Nina Olson, the National Taxpayer Advocate, has released her Annual Report to Congress (PDF). In it she recommends something old and something new: Simplification of the tax code and enactment of measures that will minimize the burden on taxpayers who are struggling to pay their tax bills. Ms. Olson said, “it is imperative for the IRS to consider the circumstances of…
Read Full Article Categorized in: Announcements, Back Taxes, IRS Installment Agreements, IRS Liens and Levies, Offers in Compromise, Tax CollectionsTax Court Update – December 2008 – Common Law Contract Rules Apply to Offers in Compromise
David W. Trout v. Commissioner of Internal Revenue - In 1997, the taxpayer entered into an offer-in-compromise (OIC) with the IRS covering tax years 1989, 1990, 1991, and 1993. The OIC included a term that required the taxpayer to timely file and pay his taxes for the next five years. The taxpayer filed his 1996 tax return…
Read Full Article Categorized in: Back Taxes, Court Cases, Offers in CompromiseIRS Announces New Mediation Program for Offers in Compromise and Trust Fund Recovery Penalties
In IR-2008-135, issued on Dec. 1, 2008, the IRS announced its institution of a 2 year test of the post-Appeals mediation and arbitration procedures for Offers in Compromise (OIC) and Trust Fund Recovery Penalties (TFRP). Beginning Dec. 1, 2008, for a two-year test period, IRS Appeals will offer post-Appeals mediation and arbitration for OIC and TFRP…
Read Full Article Categorized in: Announcements, Offers in Compromise, Payroll Taxes, Trust Fund Recovery PenaltyTax Court Update – November 2008 – Offers In Compromise and IRS Abuse of Discretion
Leslie B. Bennett v. Commissioner of Internal Revenue – This case demonstrates how difficult it can be to get the IRS to accept an Offer in Compromise. The Petitioner, Ms. Bennett, owed $110,000.00 to the IRS. She filed an Offer in Compromise offering $15,000.00 in complete and total settlement of the debt. The IRS rejected the…
Read Full Article Categorized in: Court Cases, Offers in Compromise