Choosing between jail time and negotiating with the IRS to reypay back taxes and fines seems like an easy choice. But for many, their fear keeps them from acting and before long the IRS comes calling.
If you have a tax problem, you don’t have to repeat this mistake. Many people don’t realize that you can often negotiate a lower tax bill with the IRS using what is called an IRS Offer In Compromise or OIC. With an IRS offer in compromise, you can lower your overall tax debt and make monthly payments that let you not only avoid jail time, but wage garnishments and IRS levy’s as well.
Here’s an example of what not to do and more on the IRS Offer in Compromise:
(KMOV) Channel 4 St. Louis, MO August 21, 2011 — The United States Attorney’s Office announced today that Marilyn Francel pled guilty to tax evasion involving joint income tax returns filed with her husband for the years 2003-2006. In papers filed with the court, Francel agreed that she was the practice manager of her husband’s plastic surgery medical practice – Thomas J. Francel M.D. Plastic Surgery P.C.
The practice offered discounts for non-insured cosmetic surgeries when the patient paid by cash or cashier’s check. These discounted payments were recorded in a green ledger book maintained by the office business manager and not in the normal financial records of the practice.
Francel agreed that these receipts were not deposited into the business bank account for the practice. Each count carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. The parties recommended to the court a range under the Sentencing Guidelines in which a sentence of up to 12 months in prison could be imposed.
Link to full article
Following is a summary of an IRS Offer in Compromise
The IRS’ Offer in Compromise program allows taxpayers to settle their tax debt
- It settles your tax liability for less than the full amount owed.
- It is possible to pay “Pennies on the Dollar Owed’ in taxes (but don’t be suckered in by tax services that promise the moon, especially the firms that may suggest an OIC amount before even reviewing your case in detail!).
- In order to properly submit an Offer in Compromise you must first complete several special IRS forms.
You must be careful
- To increase the chances of a successful IRS ruling you should hire a tax attorney with extensive knowledge of the IRS’ procedures.
- Why? Because the key is to determine the least amount that the IRS will accept from you.
- Let a tax professional prepare the documents for you – quickly and affordably.
- If your Offer is not submitted correctly it will be rejected, or you may be required to pay more than is necessary.
View settlements I’ve obtained for my clients over the last 18 years.
With an IRS offer in compromise, you not only get a fresh start with the IRS, it’s one of the best ways to avoid jail time.
Until Next Time,
Jeff Fouts, Tax Attorney
Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer, (Ellijay, pop. 1,584) not some fictional marketing character. I’ve represented tax clients against the IRS in all 50 states, and in 21 foreign countries. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating.
I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C., including the U.S. Supreme Court. My competitors covet my Google ranking but my clients covet my sound legal counsel. I deal directly with my clients and have a small, tireless staff of tax specialists.
You can put off your tax problem, or put us to work for you.