Offers in Compromise
February 17, 2016
Believe it or not, even the IRS can have compassion in your more desparate times. The Offer in Compromise process allows taxpayers who truly have no chance of paying off their tax debts in a reasonable (six years) period of time. The general premise is that the IRS will settle debt outstanding, but it's not quite like what you see on television. While I guess it's possible to have a settlement for pennies on the dollar, let's face it, the most effective collection organization in the world will not make those kinds of deals unless you had valid debt and had literally no way to pay it off. Now bankruptcy can help in very certain cases - talk to a bankruptcy attorney about that. But for the most part, if tax is your only outstanding debt, there's usually a way through this with the IRS.
That said, to check to see if an Offer in Compromise is helpful for you, I would need the following documents to assess and ultimately prepare the paperwork for this case.
• Drivers License
• Name / dates of birth of all in the household
• Employer’s name, address, occupation, tenure with employer, compensation
• Three month’s bank statements
• Most recent pay stubs from each employer
• Most recent statement for cash value of life insurance
• Most recent statement for each investment/retirement account
• Most recent statement for any other source of income
• Most recent statement from your lenders (mortgage, auto, consumer)
• List of real estate owned
• List of vehicles owned (year, make, model, mileage)
• One month statement for each utility
• One month statement for health insurance (how much paid)
During the course of our time together, we may come across other documents to satisfy the IRS, but this will certainly get you started.