How long will it take to reach a settlement with an Offer in Compromise?
From start to finish the average is 8-10 months.
How can I afford to have a tax attorney apply for an Offer and pay the IRS at the same time?
While in pursuit of a settlement your IRS installment agreement is paused. You will not be collected upon. Our fees are spread out over 10 months, so in most cases our fee is less than your IRS monthly payment …saving you money right away.
What if I just stay on my current payment plan? I don't want to upset the IRS.
This is an IRS program. You will not upset the IRS by applying for a program they created. If you meet the specific criteria they lay out, you will receive a settlement. Its that simple.
If you choose to stick with your payment plan till you pay off your debt, realize that in most cases, you will be paying a minimum of 7 years. And that does not include interest and penalties. Too often we see clients paying for 5+ years and they still have the same balance they started with.
Can you stop my garnishment?
Most wage garnishments are stopped within 3 days, and Social Security garnishments 45 days.
Will I get my tax refund again?
The IRS will keep any refund for the calendar year that they accept the offer. For example, if your offer is accepted in 2016 and you file your 2016 and qualify for a refund, the IRS will keep that refund. However, 2017 and moving forward you will get to keep your refund!
Are there downsides to an Offer in Compromise? What happens if they reject it?
We try to filter any client that may potentially get denied by going through our consultation. In most cases we can see who will get approved and who won’t. However, if your offer was rejected, and an appeal is not an option, the IRS will reinstate your installment agreement at the previous paused amount.
If the offer is accepted, there are no negative effects. Your only requirement is to pay the agreed settlement within 5 months, and stay current with your tax filings for the next 5 years.