In order to help people settle their tax debt for less than what they owe, the Internal Revenue Service sometimes allows what is known as an Offer in Compromise. Submitting an Offer in Compromise can be a complicated matter, and here are some tips you can use to hire the right professional to represent you.
Your representative should be admitted to practice before the IRS. This doesn’t necessarily mean you must hire an attorney, as certified public accountants can also complete negotiations before the IRS. It can also be helpful to hire a firm that is experienced at filing Offers in Compromise in order to ensure greater odds of success.
Be sure that the firm you hire is willing to handle all aspects of an Offer in Compromise. Some will only fill out the required forms without submitting documentation or negotiating with agents. This leaves you having to complete the rest of the work yourself, which is something you likely wanted to avoid in the first place.
Talk with a tax professional to find out what his or her experience with dealing with the IRS is. Some of the other things you may want to find out include:
- How many Offer in Compromise packets have you completed in the past?
- What percentage of these offers have been successful?
- What fee will you charge for representing me? What is included in this fee?
- Will you help me develop a backup plan for paying the IRS in the event my efforts at an Offer in Compromise are unsuccessful?
- What are the timelines for filing paperwork, and how will you ensure they are met?
- Will I be notified of developments in my case as they occur?
- When can I expect an answer from the Internal Revenue Service?
A reputable tax professional will not make outrageous claims as to the amount of tax debt that will be forgiven. The exact amount can vary based on a number of factors, making it difficult to predict. It can also take up to two years to fully complete an Offer in Compromise. To find out if an Offer in Compromise might work for you, contact us.
