OFFER IN COMPROMISE
February 6, 2018 - Douglas Myser
Offer in Compromise. Having been in the Tax Resolution Services business for a tad over 28 years, when only two tax resolution companies existed, I have seen alot of change in this industry. Some good and some bad. But all the while, we have kept our noses to the grindstone and continued to work hard on behalf of our clients knowing their financial futures were hanging in the balance. The story of this Offer in Compromise shows what Federal Tax Resolution stands for, our clients well being. Offer in Compromise.
Case in point, a client in the State of Oregon. This particular client had a tax debt in excess of $102,000. They were in pretty good financial shape in years gone by, both spouses worked hard and they made income in excess of $100,000. Raising two kids, they seemed like an average American family trying to achieve the American dream. Then two things happened that put them in rough waters. First off, the husband's industry took a downturn after the 2008-09 recession and took nearly a decade, like many industries, to recover from the devastation of the great recession. Second of all, grandma got severely ill, and the wife decided to stop working full time to take care of her. A story many tax resolution companies have heard hundreds of times over the years.
After hearing this story, we went through the process of determining the tax relief options available for this family, and determined that they qualified for a $18,000 Offer in Compromise. Now that may sound like a heck of a deal, owing over six figures to the IRS and settling for $18,000, but the problem with this Offer in Compromise was the back end payment. They could not come up with the money at the point that the wife was working part time, caring for a sick grandmother.
28 years ago, the company I started with, would have told her, well then we will put you on uncollectible status, sweep it under the rug, and a year down the road you will have to deal with them again. We waited for over 8 months, until they were able to move forward with the Offer in Compromise, because we are a company that cares about our clients. Ultimately the Offer in Compromise was accepted.