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DISCLAIMER: THE FOLLOWING INFORMATION IS NOT LEGAL ADVICE. THIS IS GENERAL INFORMATION AND DEFINITIONS VARY FROM STATE TO STATE. PLEASE CHECK WITH A LOCAL ATTORNEY OR CONTACT THE IRS WITH ANY QUESTIONS.
Tax resolution companies offer many different services and promise many results, but they don’t tell you exactly what they do. Below, Bismark Tax, Inc. will show you our services “in action” and let you know how we get things done here in our office with our tax attorneys.
Offer in Compromise:
If you are located in Los Angeles or anywhere in the United States of America and need help settling your tax debt, an IRS offer in compromise will allow you to make a payment on the debt for less than the actual amount you owe. Individuals often find that an offer in compromise settlement can help when they cannot afford to pay the full amount or, if they were to pay the debt in full, they would experience serious financial hardship. We consider your unique set of facts and circumstances:
Ability to pay
We can provide offer in compromise help by considering your specific circumstances surrounding the debt. We will look at any asset equity, your current income and expenses and your ability to maintain regular payments.
The Internal Revenue Service (IRS) provides a formula based on standards for repayment. Additionally, if you owe back taxes to a state agency, each state will have a different formula but all offer tax reduction programs. The IRS offer in compromise formula is used to determine the offer amount, or what they are most likely to accept; the objective as a taxpayer is to try to get the lowest offer amount possible. Keep in mind, however, that an offer in compromise settlement formula is a precise way to generate an offer amount; is not haggling over what you feel you can and cannot pay.
The formula takes into consideration your allowable expenses and your total income to determine your disposable income. Then, the IRS will add the value of your assets or any dissipated assets. The total sum should equal your offer amount. For example, below you can see that this person owed over $25,000 to the IRS and based on the formula above Bismark Tax, Inc. was able to help him reduce his debt to $50, yes that is correct from over $25,000 to $50. Just remember not everyone will qualify and his “Offer Amount” was based on his income, expenses and assets.
Here you can see how using California’s Offer in Compromise formula the tax attorney was able to lower a liability of $88,115.01 to $1,500.
Whether you are locally in Los Angeles and seeking tax relief and debt freedom from your back taxes or located in the United States or even outside the United States, consider enlisting the help of an experienced tax lawyer who can provide services focused on obtaining debt settlement. We are experienced with the formula used by the IRS and can work to obtain the lowest offer amount possible depending on your situation.