When you owe the IRS money there are specific guidelines you must follow to determine your resolution with the IRS.
There are basically 3 solutions you have when you owe the goverment money.
1. Installment Aggreement
2. Offfer and Comprise
3. CNC - Currently-not-Collectable
Last weeek, the U.S. Tax Court ruled,the IRS was not wrong to reject an offer from actor Wesley Snipes to settle his $23.5 million income tax bill for less than 4 percent of the amount owed, saying he had failed to prove a shortfall of assets and finances.
To many people and so called experts think that you just need to pull a number out of the "hat" and see if the IRS will accept that number. That is not the case.
There is specific procedure to coming up with an offer and comprise, part of that is called the "Reasonable Collection Potential" the IRS settlement officer had calcuated he could pay over $9 million.
We did that for every client that walks into my office. What is the RCP for my client?
If Wesley Snipes would have come to my office in Redlands, California, I could have told him with a pretty resonable accuracy if his offer had the "potential" to be accepted by the IRS.
If you currently owe more than $10,000 to the IRS and/or State, give us call at 909-570-1103 or visit our website to get your free report, "The 5 Things To Ask Your Tax Professional Before Spending A Dime!"
Sincerly,
Carlos Samaniego, EA
Redlands, CA
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