Many times people don’t have a clue how much they owe the IRS. In fact, they believe it is so much that if they even call to inquire the IRS is just going to carry them off to debtor’s prison. And you can forget going to the local IRS office in person to see how [...]
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I’ve Submitted my Offer in Compromise – When Will I Hear Back
Well, that’s great news that you have submitted your offer in compromise to the IRS. Assuming you submitted it property – that is with all of the correct forms, with the correctly written out checks, you have signed all of the documents, etc. – then you will usually receive a letter from the IRS within [...]
Steps to Filing an Offer in Compromise: Step 1 – Filing Back Tax Returns
So you owe the IRS a ton of money. You don’t have that much money to pay them. So what do you do? The answer is, you file an offer in compromise to settle the debt in full. An offer in compromise is an agreement between you and the IRS where the IRS agrees to [...]
Offer in Compromise or Bankruptcy for Personal Taxes
I received this question recently from this site: Need to decide which to file first bankruptcy or OIC. Have outstanding medical bills of approx 12,000 and credit card debit of approx 19,000 plus IRS of $80,000. IRS debt is old and they have filed liens, current status collectible. Heart surgery in 2007 and am disabled. [...]
Offer in Compromise for Payroll Taxes Not Paid
I was recently asked whether you could file an offer in compromise for payroll taxes that have not been paid. Well, the short answer is, yes, you can file an offer in compromise with the IRS for unpaid payroll taxes. The sticky situation you run into with payroll taxes is that these are corporate taxes [...]
Divorce and Taxes
Recently I read about a divorce matter where the couple had a large amount of IRS tax debt jointly, but in the divorce agreement, one of the parties (the husband, let’s assume) agreed to take on all of the tax debt and hold the wife harmless. You know what happened next, don’t you. Husband did [...]
IRS Offer in Compromise Returned; Should I Keep Paying?
I recently received this question from a visitor: We filed Ch. 7 Bankruptcy last summer and it was discharged in October. Then, this past Spring, we received a letter form the IRS saying we made an error on our taxes two years ago and owed several thousand after all. We filed to OIC with the [...]
IRS Offer in Compromise within Bankruptcy?
I was recently asked if the IRS would consider accepting an offer in compromise as part of a settlement in bankruptcy. The first thing you may be thinking is, "What? I didn’t think you were able to bankrupt taxes." Well, the truth is that you can bankrupt some taxes; however, there are several criteria that [...]
Is My Offer in Compromise Based on How Much I Owe?
The most common form of offer in compromise submitted to the IRS is an offer in compromise based on doubt as to collectability. This is the basis for the book (Offer in Compromise Manual). Basically, what this type of offer in compromise means is that you are offering the IRS to take less than what [...]
Will a Levy Be Released After I Submit My Offer in Compromise
When you submit an offer in compromise to the IRS all collection activity that was planned against you in the future will be stopped and the IRS will not come after you while the offer in compromise is being considered. This rule only applies to those collections when you do not already have a levy [...]
