Offer In Compromise Submissions To IRS Increase As Does Acceptance Rate

by Harry Galstian

January 17, 2014

Direct Tax Relief assists clients in settling their tax liabilities with the Offer in Compromise Program.

The Internal Revenue Service Data Book (Publication 55B issued March, 2013) for the Fiscal Year, 2012 noted that for the fiscal year (October 1, 2011, through September 30, 2012) the number of offers submitted rose 8% from 59,000 in the fiscal year 2011 to 64,000 for the fiscal year 2012 (Table 16 of Publication 55B).

“More importantly,” noted Direct Tax Relief’s senior enrolled Agent Maurice Rosaler, a former IRS revenue officer and Offer Branch Chief, “the Data Book lists an increase in Offer in Compromise acceptance by the IRS from the fiscal year 2011 to the fiscal year 2012 by 20%!”

“In the fiscal year 2011,” Rosaler stated, “as per the IRS Data Book the number of offers accepted was 20,000 and in the fiscal year 2012 that number went up to 24,000.”

The IRS publication listed (Table 16) an increase in the dollar amounts of offers accepted from $154,092,000 in the fiscal year 2011 to $195,652,000 in the fiscal year 2012.

“What that indicates,” said Rosaler who has over twenty-six years of tax resolution experience “is that the IRS has become more flexible in accepting Offers in Compromise. Now is an excellent time for any taxpayer with a debt to the government to consider if they qualify for the offer program and if so to submit their offer to the IRS for consideration.”

The Offer in Compromise program settles the taxpayer’s debt of unpaid federal tax for less than the full amount owed. Generally, the IRS accepts offers if on review it is determined that the tax cannot be paid in full or through a long-term payment agreement. More detailed information concerning the Offer in Compromise program can be found at Direct Tax Relief’s webpage under services.

“While this is an excellent time to consider and if qualified submit an offer to the government to settle your tax debt,” added Rosaler who spent almost twenty years with the IRS, “you have to remember that while in the fiscal year 2012 the IRS offer acceptance rate rose as per the Data Book to 37.5% that also means the rejection rate was 62.5%. The majority of those rejections from my experience both as an IRS Offer Specialist and now as a licensed enrolled agent are poorly prepared offer submissions.”

The best way to avoid that, Rosaler advised, is to get professional assistance in the perpetration, submission, and negotiation of your offer package. An offer package, Direct Tax Relief’s senior enrolled agent noted, is not just one simple form you fill out but a number of detailed forms and supporting documents that need to be prepared and gathered and packaged then submitted to the IRS for review.

The former IRS Offer Branch Chief also pointed out that what many taxpayers don’t realize is that the process does not end with the submission of the offer package but continues with discussions, conferences, and negotiations with IRS Offer Specialists down the road.

“This really is rather complicated,” Rosaler said, “and the best way to handle it is to get professional help by looking for and retaining a trusted tax relief firm with attorneys and enrolled agents who specialize in this field of tax resolution. The best way is to look for an authentic tax relief firm like Direct Tax Relief which is listed with the BBB with an A rating and zero complaints.”

“As the IRS Data Book shows,” concluded Rosaler, “now is an excellent time to see if you qualify for the offer program and if you do to submit your tax settlement package. Strike while the iron is hot but don’t find yourself in that 62.5% of rejections by trying to do it yourself; get the professional help needed to take advantage of the government’s new flexibility in offer acceptance.”

Direct Tax Relief has extensive experience in tax resolution and has represented numerous clients since 2007 providing professional legal tax advice to resolve tax matters including Offers in Compromise, levy and garnishment release, appeal penalties, and establishing minimal payment plans to the government.

If you have unfiled tax returns or owe the IRS or state over $10,000 in back taxes, contact Direct Tax Relief. Direct Tax Relief is an IRS tax relief company that offers free consultations to see if you qualify for IRS tax relief programs. The company offers a team of professional tax experts that include enrolled agents and tax attorneys that can manage all communications with the IRS and handle your case from beginning to end.