However there are solutions to tax problems that offer the same savings as an Offer in Compromise - they just don't go by the name - "Offer in Compromise." And...they are NOT solutions that a tax professional can see at the beginning of the case. They kind of come to the case by accident or luck.
Not Offers in Compromises But They'll Work! :
Here's a few case examples:
A wage garnishment we negotiated - Yes a garnishment! We got the IRS to take $3600 a month from a very high income client ($500,000 a year) for 50 months or $180,000 effectively settling a $1,300,000 1040 tax debt. Pretty simple : the tax debt expires in November 2017. 180k to settle $1.3 million doesn't sound like a bad deal to me.
A monthly payment plan - Yes a payment plan! We prepared all tax returns for client from 2006 to 2012. Client only owed $8,000 but owed $50,000 for tax year 2006. IRS agent specifically didn't request 2006 so we didn't supply to her. So...client is in $250 monthly payments on $8000 of debt. You can't look at this any other way but as a deal! (Sometimes the IRS doesn't request older returns - so we don't get in the way of them.).
Client walks away from business - leaving $125,000 in payroll taxes with business. Client agrees to pay $5000 (the amount of the business' remaining assets) to satisfy IRS agent. That's it - case closed. Kind of an Offer in Compromise wouldn't you say? But just not in name.
