Berkshire Tax Resolution - Offer in Compromise

In Berkshire Tax Resolution’s opinion, the IRS Offer in Compromise program is one of the best tax resolution tools available to taxpayers. Berkshire Tax Resolution allows taxpayers to settle their taxes for less, or often much less than you owe (or what the government claims you owe). Recent tax legislation has given new hope to taxpayers who were disqualified by the old Offer in Compromise procedures.

Berkshire Tax Resolution’s tax consultants have extensive expertise with planning, preparing, negotiating and even appealing rejections of IRS Offers in Compromise. Berkshire Tax Resolution saved millions of dollars for their clients through the Offer in Compromise program.

Berkshire Tax Resolution gets their edge by knowing and carefully navigating virtually every key regulation of the Offer in Compromise program. Berkshire Tax Resolution’s tax consultants also have a good working relationship with many of the IRS Offer in Compromise Specialists working for the IRS and agencies.

Berkshire Tax Resolution would like you to know that the Internal Revenue Code authorizes the IRS, to accept less than full amount of tax liability owed in any civil or criminal case arising under the tax laws prior to the case's referral to the Department of Justice. For an Offer in Compromise to be accepted, the taxpayer must establish to the satisfaction of the IRS that the taxpayer either: has no means of paying the tax, or does not actually owe the tax.

Berkshire Tax Resolution would like you to know that, prior to 1992, the IRS has been reluctant to settle tax liabilities. In February of 1992, the IRS announced new procedures for settling back taxes. Berkshire Tax Resolution informs you that the new procedures greatly liberalized the IRS Offer in Compromise process and increased the likelihood that financially distressed taxpayers would be able to settle their liabilities for less than the full amount.

The IRS will accept an Offer in Compromise when it is unlikely that the tax liability can be collected in full and the amount of the Offer in Compromise reasonably reflects collection potential, clarifies Berkshire Tax Resolution. An Offer in Compromise is a legitimate alternative to declaring a case as currently not collectible, or to a protracted installment agreement. The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government.

An IRS Offer in Compromise Is Not an Amnesty Program

The IRS has the authority to settle or compromise federal tax liabilities by accepting less than full amount under certain circumstances. Berkshire Tax Resolution would like to point out that one of the following factors must be established in order for the IRS to accept an Offer in Compromise and settle the liability:

• The taxpayer cannot pay off the liability;

• There is doubt that the taxpayer actually owes the liability;

• The settlement would promote effective tax administration.

Incidentally, the IRS is not the only agency with an Offer in Compromise program. Berkshire Tax Resolution’s tax consultants also help taxpayers in settling delinquent taxes owed to California taxing agencies such as: The Franchise Tax Board, as well as EDD and the State Board of Equalization