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Offers in Compromise

Cape Cod Tax Law Attorney
Offers In Compromise

The term "Offer in Compromise," means that in certain circumstances, it is possible for a taxpayer to compromise or settle a tax liability with the IRS by offering to pay a smaller sum as payment, even though a larger sum may be owed.

Are you seeking an experienced tax law attorney to help you resolve a large tax liability owed to the IRS? If you are interested in making an Offer of Compromise to the IRS, contact my Cape Cod law firm for a free initial consultation. I can be reached by telephone, fax, or by filling out the client intake form provided on this Web site.

The taxpayer is expected to provide reasonable documentation to the IRS to verify whether they have the ability to pay their tax debt. The IRS may accept an Offer in Compromise when it is unlikely the total tax liability can be collected in full from the taxpayer over the remaining time left in the collection statute of limitations and the amount of the offer reasonably reflects collection potential. The ultimate goal is a Compromise that is in the best interests of both the taxpayer and the IRS.

An Offer in Compromise is a legitimate alternative in the mind of the IRS, to declaring a case currently not collectible or to engage in a protracted installment agreement with a taxpayer. The goal of the IRS is to achieve the collection of what is potentially collectible at the earliest possible time and at the lowest cost to the government. If an offer is accepted by the IRS and once the offer amount is paid, tax liens will be removed. The stress endured by the taxpayer in having the IRS tax debt hanging over their head can finally end.

Internal Revenue Service Process for Offers in Compromise

The Offer in Compromise process required by the IRS is that the taxpayer submits a financial statement to the IRS that lists all the taxpayer's assets and the taxpayer's monthly income and expenses. The IRS also requires along with the financial statement, documentation showing the taxpayer's last three months of income and expenses, as well as the last three months of bank statements. The taxpayer also, has to be current in all their tax return filings with the IRS in order for an Offer in Compromise to even be considered by the IRS.

The terms by which the taxpayer pays the Offer in Compromise are varied and are initiated by the taxpayer. There is a $186.00 application fee required by the IRS that has to accompany each Offer in Compromise. The Offer in Compromise (Form 656) is a six (6) page document.

The taxpayer can submit a lump sum cash offer in which the taxpayer pays the IRS 20% of the offer amount when submitting the Offer in Compromise and has to pay the balance of the offer in five (5) or fewer months. Additionally, the taxpayer can submit a payment offer which is paid within six (6) to twenty-four (24) months and when submitting the Offer in Compromise, sends a payment in the amount of the monthly payment. During the time that the offer is under investigation, the taxpayer must continue to make regular monthly payments

Attorney Ronald F. Hood has been extremely successful in having the Offers in Compromise amounts offered by his clients to the IRS, accepted by the IRS. However, it is important to remember, that each taxpayer's financial situation is unique and the offer amount of each taxpayer that is accepted by the IRS depends on each taxpayer's unique factual situation. Two different taxpayers may owe the same amount of tax to the IRS, but the IRS may accept different offer amounts from each one.* Attorney Hood has saved his clients more than $6.7 million in taxes owed to the IRS with accepted Offers in Compromise.

The following are examples of some of the Offers in Compromise of Attorney Hood's clients:

Approximate Amounts Owed to the IRSAmounts Accepted by the IRSApproximate Money Saved by the Clients
$9,800.00$2,200.00$7,600.00
$9,900.00$1,000.00$8,900.00
$23,261.00$2,399.00$20,862.00
$24,000.00$3,000.00$21,000.00
$25,000.00 $5,179.00$19,821.00
$26,300.00$7,700.00$18,600.00
$32,216.00$4,000.00$28,216.00
$33,362.00$1,148.00$32,214.00
$35,734.00$5,942.00$29,792.00
$38,000.00$2,500.00$35,500.00
$38,382.00$7,469.00$30,913.00
$40,982.00$10,988.00$29,994.00
$41,000.00$2,500.00$38,500.00
$41,115.00$3,600.00$37,515.00
$42,133.00$6,000.00$36,133.00
$44,000.00 $1,000.00$43,000.00
$45,229.00$2,818.00$42,411.00
$48,836.00$5,180.00$43,656.00
$50,100.00$6,000.00$44,100.00
$51,906.00$8,900.00$43,006.00
$51,917.00$1,380.00$50,537.00
$55,000.00$5,000.00$50,000.00
$55,000.00$15,444.00$39,566.00
$55,000.00$2,500.00$53,000.00
$58,000.00$10,010.00$47,990.00
$64,000.00$11,394.00$52,506.00
$65,713.00$10,828.00$54,885.00
$66,114.00$24,016.00$42,098.00
$70,000.00$10,000.00$60,000.00
$71,100.00$5,556.00$65,544.00
$72,600.00$19,728.00$53,872.00
$73,201.00$25,169.00$48,032.00
$73,350.00$2,500.00$70,850.00
$75,787.00$9,255.00$66,582.00
$76,000.00$5,000.00$71,000.00
$76,000.00$4,455.00$71,545.00
$79,070.00$1,000.00$78,070.00
$82,000.00$20,000.00$62,000.00
$83,610.00$16,200.00$67,410.00
$84,000.00$18,690.00$65,310.00
$84,300.00$2,000.00$82,300.00
$89,579.00$3,000.00$86,579.00
$90,000.00$3,000.00$87,000.00
$100,000.00$20,887.00$79,113.00
$100,036.00$16,930.00$83,106.00
$114,353.00$20,566.00$93,787.00
$123,611.00$1,000.00$122,611.00
$125,561.00$1,408.00$124,153.00
$138,000.00$3,875.00$134,125.00
$138,155.00$6,109.00$132,046.00
$143,039.00$24,000.00$119,039.00
$161,000.00$12,000.00$149,000.00
$162,000.00$32,640.00$129,360.00
$165,000.00$7,636.00$157,364.00
$171,810.00$18,800.00$153,010.00
$177,100.00$2,760.00$174,340.00
$184,300.00$1,000.00$183,300.00
$197,441.00$25,000.00$172,441.00
$207,560.00$12,936.00$194,564.00
$213,300.00$58,208.00$155,092.00
$220,366.00$8,926.00$211,940.00
$223,945.00$1,000.00$222,945.00
$237,087.00$5,880.00$231,207.00
$244,000.00$6,073.00$237,927.00
$246,267.00$25,980.00$220,287.00
$248,758.00$12,631.00$236,127.00
$292,000.00$160,000.00$132,000.00
$419,388.00$2,000.00$417,398.00
$478,000.00$62,000.00$416,000.00



*Past results do not guarantee future outcomes.

For complete information on Offers in Compromise, please contact me Attorney Ronald F. Hood by telephone, fax, or by filling out the client intake form provided on this Web site.

Ronald F. Hood
Attorney at Law
15 Joshua Lane
Suite 101
East Falmouth, MA 02536
Phone 508.388.7735
Fax 508.548.2302
E-mail Us | Map & Directions

Mailing Address

Ronald F. Hood
Attorney at Law
P.O. Box 546
Mashpee, MA 02649


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