revenue collection potential: How long does it take to prepare an Offer-in-Compromise?
- 11/20/19 04:12 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. The IRS Offer-in-Compromise is an agreement to clear a tax debt for less than its face value. Paying less is a great goal but your effort will be waisted if you don’t do all the steps. Making the offer is a time-consuming task that requires a considerable amount of reporting to the IRS to show that a write-down of the debt is in the interest of the government. This hard work could easily be for naught since the IRS rejects about 60% of the offers received. First of all, you have to (1 comments)
revenue collection potential: How the IRS RCP Formula Works – Part 1
- 08/16/19 02:57 PM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS Offer-in-Compromise is an agreement to clear a tax debt for less than its face value. How many dollars is the IRS willing to compromise on depends upon a formula. This formula is called the “Reasonable Collection Potential” or RCP for short.
The formula is based on two ideas – first, that a taxpayer might have equity built up in assets that they currently own which could be paid over to cover the debt. And secondly, the taxpayer will have future earnings, a portion of which, could (1 comments)
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Jim Payne, CPA
CPA firm practicing in the area of IRS Collections