Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I owe back taxes from 05 and 07 from a past buisness misadventure. I made payments for awhile then did not for some time. I now ge SSDI and was contacted by IRS and they say tey cantak 15 % of my monthly income. I owe 6475.00 and asked them if I could pay a smaller amt if I paid it all now.
The said I would have to fill out a compromise form and pay a nonrefundable 150.00 fee and 20% of amount I want to offer as settlement also nonrefundable. So if I ofer 4000.00 I would send in 150.00 plus 800.00 and if thy do not except I lose 950.00 and have to resubmit another offer ad 150.00 and another 20%.
This seems like a lod of caca and has anyone heard of this? What other way can I offer a less amt. without being penalized?
Thanks for reply. I have looked this up already. I was just wondering if anyone had heard of the compromise I was told of. Seem fishy.
Whether or not it's fishy depends on if the 20% would go toward the debt. I'm assuming that it would, and the application fee wouldn't. If so, applying for the offer in compromise would only cost $150 if it were rejected, but they can leave you hanging for up to two years while they make their decision.
The Wikipedia article gives you their guidelines on income related to the debt, so if you run the numbers you can get a good idea if it would be a good idea to reply. The SSDI would help you out, but you'll probably have to factor in your wife's income as well.
Location: 23.7 million to 162 million miles North of Venus
23,451 posts, read 12,487,658 times
Reputation: 10435
Quote:
Originally Posted by sterlinggirl
You're welcome.
There's some great information available here, here, here, and here.
Great links sterlinggirl. I agree with SG when she said that if you are denied then the fee amount would be gone but your 20% amount would probably go toward your back taxes.
I've never done it and I don't know of anyone that has done it, at least nobody I know had mentioned doing it. I have heard about it though.
From the third link that SG had posted:
Quote:
HowmanyOffersinCompromisedoestheIRSapproveeachyear?
The Internal Revenue Service approves only a minority of offer in compromise applications each year. In 2004, the IRS approved 19,546 offers, about 16% of the total number of offers received.
The key to a successful Offer in Compromise is making sure that the IRS can process your application, and that you submit complete backup documentation to support your offer.
So it would look like chances may be slim. Though providing complete backup docs may improve your chances.
And, depending on your income you may not have to pay the non refundable fee. From that same link:
Quote:
Is there a fee for submitting an Offer in Compromise?
The IRS charges a user fee of $150 to process an Offer in Compromise. You must pay this fee whether you prepare the Offer yourself or hire a tax professional. If you are livingbelowthepovertyline, the IRS will waive the $150 fee if you submit Form 656-A to request a fee waiver.
From a different link:
The poverty line as of 2009 (not including Alaska and Hawaii) Persons in family and Poverty guideline amt:
1 .. $10,830
2 .. $14,570
3 .. $18,310
4 .. $22,050
5 .. $25,790
6 .. $29,530
7 .. $33,270
8 .. $37,010
For families with more than 8 persons, add $3,740 for each additional person 2009 Federal Poverty Guidelines
You can make the offer yourself, instead of paying someone else to do it, but in the least you should consider speaking to your tax preparer about the program. I'm sure that person would be able to tell you what you need to know.
If you do it and you are approved then be sure to follow the set guidelines so that the OIC agreement won't be revoked.
I made arrangement to pay 200.00/mo and will pay more when possible. I do owe the taxes and ned to pay my fair share and move on.
Thanks for all replys.
Someone has to pay for Obama's good deeds.lol
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
