Month: February 2013

So, you hear an ad on the radio, and the voice is telling you that you can settle your credit card debt for less than what you owe. You think, "I'm unemployed, and I can't pay, I should be able to get a pretty good deal on my own."  So you call your credit card company and you work out a deal!  The bank will settle your debt of $19,566.00 for a one-time payment of $7,500.00!  That's less than 40% of what you owe. Who would pass up a deal like that? So you ask family and friends to borrow some money, maybe you cash out your 401k, and now you have one less thing to worry about once you become gainfully employed again. Success!

Then you start thinking, "I've been getting a lot of mail from the IRS, I wonder if I can work something out with them as well."  You've done your research, and you are aware that the debt settlement process with the IRS has a funny name, something called an "offer in compromise."  So now you're wondering – "Is IRS Debt like credit card debt? Can I file an Offer in Compromise when  I am unemployed?"

The quick answer is yes, nothing actually prevents you from submitting an offer in compromise when you are unemployed. But should you submit one? That's a bit more complicated. Let me explain.  Solving an IRS tax debt is nothing like settling credit card debt — credit card purchases are voluntary. The IRS is not.

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The IRS Offer in Compromise provides a great chance to settle a tax debt with the IRS permanently. There can be drawbacks, but settling your tax debt for a fraction of what you owe is pretty dang sweet. There are times when you actually don't want the IRS to fully consider your Offer in Compromise, and you can accomplish this by withdrawing your offer. But why would you ever do this? In this article, I will discuss why sometimes an IRS Offer in Compromise withdrawal is the best move…for now.

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One recurring concern our clients have is the status of the real estate they may hold overseas—whether a family home or a rental property is —  What are the implications of holding foreign real estate, especially if you need to participate in the Offshore Voluntary Disclosure Program? This article will address the most common concerns and describe the action taxpayers should take.

Whether or not your foreign real estate produces income makes all the difference

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Just like a personal IRS tax debt, back payroll taxes can be negotiated down using the IRS Offer in Compromise program. This article will discuss the six advantages of using an Offer in Compromise to settle back payroll taxes, along with giving some warnings about the program.

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