The IRS Rejected My Offer in Compromise Submitted by an Attorney, Twice. What Now? – Bradley

“Dear Jim,

Presently paying state 616 per month for 60 months paying. Paying fed 1780. Per month for 72 months

After using an in effective attorney failed offer in compromise twice is there a better deal that I can make with state and fed?

Bradley”

Bradley:

Your options all depend on your facts. Specifically, what is your ability to pay according to your financial situation and IRS limitations on what they will allow you to spend for necessary living expenses and for you to produce income.

Hence, your answer lies in the computation of your ability to pay. You should have an idea of what your ability to pay based on the IRS computation from your failed offer in compromise. When your offer is rejected, the IRS provides you an “Income/expense table” or “IET” which has their computation of your ability to pay. Presumably, you and your attorney worked with the IRS during the offer and they would have all of your income and expenses accounted for in the calculation.

One item you might want to consider is filing another offer in compromise. In May of this year the IRS relaxed its rules on qualifying for an offer and the computation of the offer amount. These changes have made the offer in compromise much more accessible for many taxpayers who previously had high offer amounts due to a large amount of monthly disposable income.

Again, the qualification and offer amounts are all based on your specific facts and circumstances. I encourage you to look further into the program if your offer was rejected prior to May 21st of this year.

Keep us posted on your progress or any additional questions.

Thanks

Jim

Jim Buttonow is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jim is a licensed CPA who spent 19 years with the IRS coordinating large compliance teams of IRS agents and specialized personnel. In the last 5 years, Jim has invented consumer and practitioner software and treatises on how to address many different tax issues. He has also represented many people before the IRS examination, collection, filing, and appeals functions. He currently assists taxpayers on an active pro bono tax practice aimed at serving people in need. He can be reached at IRSMind.com.

If you have a tax question you’d like to ask just use the online form. I’m happy to help you totally for free.