You're tossing and turning in bed, unable to sleep because of your tax burdens. You get up, hit the refrigerator for the Baskin Robins Pecan Delight and turn on the television for comfort. Between re-runs of Everyone Loves Raymond or Friends there's a commercial: An authoritative yet comforting voice tells you that, "We can settle your tax debt for pennies on the dollar. Don't delay. Call now!!!!!!" Sounds too good to be true? It probably is because what the voice doesn't tell you about offers-in-compromise is that they are:
Expensive . My fees, when I believe an offer has an honest chance of success, usually run $4500 to $7500, but the Offer Mill whose commercial you were watching will almost always charge you much more and deliver far less. My goal is to achieve the best results possible at the lowest cost.
Time Consuming . The documentation the IRS requires from you is a time-eating monster from Hell, not just for me, but for you because they will require you to update the information you provided two, three, and more times. Refuse and your offer will get rejected without appeal rights.
Non-Refundable Down Payment . IRS requires that you include 20% of the offer amount with your offer. If they reject your offer, they keep your down payment.
Low Acceptance Rate . The process has been so abused by the Offer Mills that the IRS looks at offers with a jaundiced eye, accepting only about 25% of all offers. The IRS works really hard to find excuses to reject your offer, and you cannot cram it down their throats.
Better Alternatives . Bankruptcy or partial pay installment agreements will often result in your paying much less in taxes. The Offer Mills, however, cannot prepare your bankruptcy petition because they are not lawyers, and the partial pay installment agreement earns them much less in fees.
Delays You Coming to a Real Solution . Filing an offer that is not going to work only delays your coming to a real solution and costs you money.
Low Credibility . Go to the Better Business Bureau or just google the name of the Offer Mill and you will often see a ton of complaints.
How Are You Going to Pay the Offer? 90% of the time if the IRS accepts your offer, it will do so only if you offer a higher amount. If you cannot raise the additional funds, your offer, your down payment, and the fees you paid the Offer Mill, go down the toilet.
Lack of Communication or No Communication . Do you know how expensive television advertising is? The only way the Offer Mills can pay for television time, overhead, and turn a profit is by volume. So just how much hands-on care do you think they are going to give to your problem?
In other words, the correct resolution depends on the nature of your situation. Contact Tax Litigation Law Office of Scott Kauffman today to discuss how best to resolve your tax problem.
Written by the Office of Scott Kauffman