Offer in Compromise

Has anyone out there done an offer in compromise?

compromise for what?

lady, it is an offer to pay a lesser amount of taxes than what you owe. I once was going to do it , but the paper work to fill out was never ending. My accountant did it for me, but it was just too complicated. I wound up just paying what i owed with a payment plan that was affordable to me,

For back taxes, I want to do one and they say you can do it yourself but I don't understand all of it and it cost an arm and a leg to have a lawyer do it for you. You only get one shot at it so you don't want to mess it up.

hope, the government is very easy to work with. They will give you a payment plan that you can afford.

An offer in compromise is when an offer is made to the IRS to settle a tax bill. It is usually presented by a tax lawyer to the IRS and then the IRS can accept it or counter. I personally have never done it. I went to the office to set up a payment plan. That is where I learned about it. I found the IRS very easy to work with but I had to go into CNC status which means currently not collectable. Do not go to CNC unless you can't avoid it. They slap a lien on you

I have a payment plan of 100.00 a month and I have paid for 2 years plus surrendered any income tax returns for the last two years. At this rate I will be paying until I die as with interest and penalties that keep adding up it just doesn't go down.

The best payment plan they could offer me was more than I could afford. They are going to check back on me this year to see if things improved

Don't they slap a lien on you even if you set up payment plans?

hope..what was the amount you settled down and agreed to pay?..and did you have a tax lawyer settle this amount for you? I don't think there is a lien on what you are paying if they agree to a settlement ...amount you now owe is figured in settlement agreed upon.. but I could be mistaken

I didn't settled down to any amount and I did it myself over the phone with the IRS. Acutally they considered me someone who has a CNC status but we agreed on this montly payment so I just keep paying.

An Offer in Compromise can be done by yourself. There is a packet of information that you need to fill out for the IRS and send in. The settlement you propose needs to be sent in one lump sum. No payment plans are accepted for that. You also have to agree to file all other tax returns on time and not have any more liabilities, or the deal's off.

Just wondering why you have never done one yourself?
I may try to do soon knowing that I can ask questions of this forum when I get stumped. I know I have to get it right the first time around and cannot afford a lawyer to do it for me.

Good question! I haven't done one yet, because I am having a problem coming up with the settlement! If I had it, I would do it, trust me.

no seriously !!!!I do wish you the best!!!!....so many people are soooo frightened in dealing with IRS..we forget to keep in mind that they work for us..the taxpayers..they work for us ...the U.S. citizens... we pay their wages...and any questions or help needed should be addressed in a professional informative non threatening manner ...still I myself always feel like I need to put on a "Depends" before I open any form of government correspondence!

LOL!! Honey, once I get out of debt I'll buy stock in that company. Hey, the boomers are retiring, business will be booming, right??