The Mission Statement of the Tax Resolution Blog?

We created the Tax Problem Resolution Blog to aid the average person to become more discerning buyers of tax resolution and tax representation services. Please read the index of articles below to learn more about the tax resolution industry and to assist you in solving your specific tax problem.

Jay Freeborne, Enrolled Agent at Washington Tax Services, open for business since 1989

Wednesday, May 12, 2010

Offer in Compromise Accepted for Home Owner with $100k in equity for $1600!?

It's safe to say that if you try to settle with the IRS, your minimum Offer is going to be the value of your house multiplied by 80% minus your mortgage.  For example, a $200,000 house with a $150,000 mortgage would be valued at $30,000 for your offer (200k x 80% minus 150k = 30k).

However, as the following story will explain, sometimes the IRS will waive the equity in the house for Offers, IF there is financial hardship.

In the case we got accepted this week, the lady had a house worth $140,000 and a $40,000 note against it. Her Offer that was accepted was $1600.00.  Wow.  In this situation, the IRS didn't see that the equity was accessible due to her minimal income and exhaustive expenses.

Do note that in 2012 - the IRS made some of their most radical changes to the Offer Program -- Offer in Compromise - Rules Changed -- Big Time!


Not a bad deal. Call me at my desk -  1-866-525-7302 to discuss how the Offer program might serve you.  Jay Freeborne, Enrolled Agent, Washington Tax Services

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