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

Friday, January 7, 2011

Offer in Compromise -- How Long Does it Take to Process?

I just had a client pay their Offer.  They are done.  I decided to look at the history to see how long it took.   This client settled a $50,000 tax debt for $2700.  No kidding.

July 24, 2009  Client was referred to me. After an analysis of their case, hired us.
Jul to Sept 2009 Keep client out of collections with Power of Attorney
October 27, 2009 We prepared Offer for client.  Sent docs to client to submit to IRS.
June thru Sep 2010  Back and forth between Offer division substantiating information, etc.
Oct 2010  Offer in Compromise accepted.
January 2011 Offer in Compromise paid in full by taxpayer.

So this unusually long Offer took 12 months for approval.  That, I would say, is far above the average time to process.  Perhaps it was because it was the region they were in.  They are North Carolinians.  Not sure!

Do note that in May of 2012 - the IRS rules changed big time in their calculating of Offer in Compromises -- Offer in Compromise Rule Changes in 2012: Settle for up to 75% Less

Call me at 1-866-525-7302 for further clarity on how the Offer program might work for you.  Jay Freeborne, Enrolled Agent, Washington Tax Services 

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