IRS Offer In Compromise Settlement

An offer in compromise is basically an agreement between the Internal Revenue Service (IRS) and a taxpayer to reach a settlement on tax debts. Applying for an offer in compromise is often a lengthy and complicated process. It can take anywhere between a year and two for arriving at a successful resolution on the application. Moreover, only about 16% of the applications are actually accepted by IRS. Offer in compromise help is readily available from a variety of sources ranging from tax lawyers to books and Web sites. Owing to the complexity involved in the filing process, a person seeking offer in compromise help should look for a qualified professional with extensive experience.

Numerous tax professionals project themselves as the best source for offer in compromise help. However, a good many of these professionals either lack experience or are deceivers. The rising number of cheating cases has forced the IRS to warn taxpayers against hiring unqualified tax advisors. Taxpayers are best advised to approach a tax attorney, Certified Public Accountant (CPA), or Enrolled Agent (EA). These professionals may charge a fee ranging from $1,500 to $3,000. The fee can be higher for more accurate and detailed offer in compromise representation. Some professionals providing offer in compromise help may charge a much lower fee. They just prepare the offer in compromise forms and, generally do not help with the necessary backup documentation. Also, they may not negotiate with the IRS on behalf of the taxpayer.

A professional providing offer in compromise help should have considerable experience in IRS collection matters also. He must be thorough with laws related to IRS tax debt collection and evaluation procedures. The professional should be seasoned enough to deal with revenue officers, the Automated Collection Systems division, and appeals. Also, his clientele should be checked for success rates.