San Diego Offer in Compromise Lawyer

If it can be shown that none of your tax balance can be fully paid within 10 years of the date of assessment, a detailed evaluation is warranted to determine the extent to which an offer in compromise would work for you. We have an extraordinarily high success rate with offers because we perform an intense and detailed analysis of financial information before filing the offer with the IRS on your behalf.

In determining whether or not the IRS will accept an offer in compromise, the IRS will evaluate what it calls your realizable collection potential. This is comprised of two elements, the first of which is equity in assets that you own. This has to do with equity in your residence or other real property that you may own, the value of individual retirement accounts and the value of any other assets that have a substantial value.

The second element in realizable collection potential is what the IRS refers to as future income. The IRS will carefully evaluate your current monthly income, and from that it will subtract what you’re paying for necessary living expenses (subject to certain limitations) and also subtract current taxes you are paying on that income. The figure that is left over is the amount of funds which are available to devote to the payment of back taxes. The IRS will take that figure and multiply it by 12 to determine the value of what it deems to be your future income.

An offer in compromise can be an excellent means by which to free yourself from burdensome tax liabilities, and that when the offer is paid, the IRS will release any tax liens that had previously been filed.

Details of everything that needs to be addressed in filing an offer in compromise which will be successful appears in “King’s Legal Guide to Offers in Compromise,” for which I was the legal editor.