The IRS Might Reduce What You Owe - Offer in Compromise
Dear Demetriou, Montano & Assoc:
I am 66 years old and owe the IRS over $50,000. I have set up a payment plan of $700 a month forever. This was based on my ability to pay. I am still working and earning a substantial income. If I were to quit my job or be forced to quit, thereby reducing my income to just social security, I would no longer be able to afford the $700 a month. I'd be lucky to afford $50 a month. What can I do?
If you make a permanent decision to go on Social Security, you may be a candidate for the Offer in Compromise. The IRS collection division understands that they can't get blood out of a turnip. On the other hand, they don't like to see taxpayers bailing out on their obligation. Before they are going to approve a reduction in your obligation, they will look to see if you have any equity in assets and analyze your monthly income and living expenses.
If your Offer is accepted and if you do not file and fully pay your taxes for the next five years, the IRS could rescind the Offer in Compromise and the entire tax liability with penalties and interest would come back and the IRS would be after you again.
With our experience in these matters, we can easily evaluate your specific circumstances and give you wise counsel on the best direction to take in the matter. We will work hard to minimize your tax debt or even eliminate it completely. However, since every case is very different, the outcome cannot be predicted with 100% accuracy. That is why it is hard for citizens to go through the collection negotiations on their own. Using an Enrolled Agent (EA) like Jim Demetriou EA or Mike Montano EA gives you the best chance of an excellent result.
Demetriou, Montano, and Assoc, Tax Resolution Specialists
12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025