I don't know if it was our fine work, or if the stars aligned just right…but we recently had our fastest Offer in Compromise acceptance time ever!
"Jackie's" tax problem
Jackie owed over $160,000 in Federal taxes. She worked two jobs, had health issues and a mountain of other monthly debts. It was clear that Jackie's financial woes were not coming to an end in the near future Her income was not enough to cover her necessary living expenses and high medical costs. She would likely never be able to pay the IRS back.
Previous attempts to settle her IRS debt had failed. The IRS wanted her to pay around $300 a month, which she couldn't afford. Worse, Jackie ran up a new tax debt in 2012, so her partial payment installment agreement defaulted and the IRS started levying her wages at her first job.
Luckily, we were able to turn her bad news into great news.
As we took a look at her financial information, we thought she might be an Offer in Compromise candidate. I just needed to think of our strategy — her credit card bills were too high. See, this is the rule: Credit cards expenses are a non-allowable expense, but medical expenses are allowable.
We were able to prove that the credit card expenses she was paying were actually for medical expenses. Since she couldn't afford to pay her medical expenses out of pocket, she had to charge them.
And the result?
We submitted Jackie's Offer in Compromise in the beginning of March, 2013 and subsequently filed for an appeal on a levy notice she received around the same time. In June, we received a fax from the Appeals Officer, telling us that she had received notification that Jackie's Offer in Compromise had been accepted. This was last week, on June 24th. Her offer was accepted in a record three months, and was so compelling that the IRS accepted the offer without contacting us once for more information! That is a first for me, and having an offer accepted in 3-months is a first for the firm! The total amount of Jackie's offer was $1,000.
I am so happy we were able to get Jackie her life back…and in record time.
Of course, not every Offer in Compromise goes so quickly or as smoothly. I've had some Offers take over a year! And of course, not everyone qualifies for an Offer in Compromise, but it is sure nice when they do.