You have no doubt heard the news online about the IRS fresh start program. The fresh start program is basically misleading advertising.  You owe the IRS a considerable sum and do not have the money to pay the IRS in full right now, so you decided to file your own offer in compromise. You called a Tax Resolution Specialist (maybe even one of those 1-800 companies) and did not like the price, so you did it yourself. You didn’t hear anything back from the IRS for a long time, spent numerous hours on the phone to the IRS to no avail, and finally got a letter stating your offer has been returned. 

Why does this happen? 

There are numerous reasons why this happens. The approval rate for an OIC is less than 20%. I frankly have never seen a client successfully submit an OIC. They usually forget important documents or fill out the form incorrectly.  

Another reason to keep in mind is that the IRS OIC unit enjoys returning OIC offers. There is no appeal for the return of an OIC. You must simply start over and redo it all. The IRS knows that and they don’t care how hard you work to put it together. They get paid every week regardless of how you are treated,

There is another reason…

 The IRS wants to deny as many OIC offers by returning the offer as they can. The IRS is understaffed and the people examining the OIC’S are untrained and unsupervised. They do not know or care what the OIC rules are. I would not be surprised if they do not get a bonus for how many they reject or return. 

I believe filing your own OIC is a big mistake. It likely will be returned and while the IRS is playing around with it while your offer sits on someone’s desk for 6 months the statute of limitations for the IRS to collect your debt is suspended so it makes it easier for the IRS to collect from you. The statute of limitations is 10 years.

So, when you send in your own OIC, the IRS receives it. The IRS immediately suspends the statue. Of course, you do realize the IRS regularly simply says they never received it which is another IRS tactic.

If you have a substantial tax debt just give us a call. 

We can determine if you qualify for an OIC or perhaps another collection alternative like a partial pay installment agreement, regular installment agreement, currently non-collectible or perhaps refer you to an attorney to file bankruptcy.

You need a professional to do this for you. Well, if you owe $200,000 and our fee is $10,000 and you settle with the IRS for $10,000 you are way ahead. So, give us a call and we can help you!

So, if you are in this situation do not despair! Obtaining good representation will undoubtedly obtain a good result for you.

So, feel free to contact us at Philip Garnett Tax Resolution and we can help you. Our number is 360-623-1375 or email is [email protected]