Logo, John Meyers Attorney at Law - Tax Attorney

(614) 670-8654
1170 Old Henderson Rd. Suite 109,
Columbus, OH 43220

Offers in Compromise

An offer in compromise is made in three distinct areas:

a.    Doubt as to collectability – This essentially occurs when the taxpayer owes a great deal of money to the government, but does not have any significant assets and is barely making enough money to make ends meet.

b.    Doubt as to liability – There is legitimate doubt that the taxpayer owes what the IRS says they owe for three possible reasons:

i.    The Revenue Officer made a mistake in interpreting the tax code,
ii.    The Revenue Officer failed to properly consider the evidence presented by the taxpayer; and
iii.    The taxpayer has new evidence

c.    Effective tax administration – There is no doubt as to the tax owed or that the taxpayer has the assets necessary to pay the IRS, but the taxpayer is responsible for example for a sick child that they are caring for and will need the assets to care for this dependent.

Many companies will mention past cases of their clients being able to reduce the client’s tax liability and have their client literally pay pennies on the dollars that they owed the IRS. However, they fail to mention that you must essentially pass a two part test to determine if you (the taxpayer) are able to take advantage of an “Offer in Compromise.”

First, the IRS will look to see how much money you make after you pay for your living expenses such as rent, food, car, etc. and; second, they will look at what assets they can use to pay the tax liability owed to the government. Unless you meet these two criteria or the criteria set forth above, you will likely waste your time and money using one of these “national” service providers.

If you meet with me, we will be able to tell very quickly whether or not you are a candidate for this type of treatment.