An Unauthorized Biography of the IRS Offer in Compromise
If you have consumed media like TV or radio in the last ten years -- you might be acquainted with the "settle for pennies for a dollar on your taxes" jingle. In fact the greatest purveyor of that advertising -- American Tax Relief -- was shutdown by the Federal Trade Commission in 2010. But thanks to their incessant advertising and others -- "pennies on the dollar settlements" became a certified meme in the general public. Owe taxes? Maybe you can settle them?
Well, Yes you can. Sometimes.
Before the "pennies on the dollar" jingle entered the American consciousness -- where did the Offer in Compromise program originate? Well our sources says that it started with the boxer Joe Louis -- one of America's biggest heroes in the early to mid 20th century. Joe earned large sums as successful boxers do, but failed to withhold taxes on these big yet sporadic paydays. Well this beloved hero fell behind on taxes - big time. But the IRS and/or government folks decided to give the guy a break and let him make a settlement. The first IRS Offer in Compromise was born Thanks Joe Or at least this Offer creation myth has a good ring to it, doesn't it?
In the '70's, we are told the Offer program started to get more bureaucratic airplay. But it wasn't until the big 1986 tax reform act that the program became "official." Three years later in 1989, Washington Tax Services came into being -- sending mailings to people with tax liens and doing Offers where we could.
In the last decade, the Offer has significantly changed, mandating that 20% of Offers be paid up front. Furthermore, a $150 filing fee was put in place - to pay for staff and to discourage frivolous filing of Offers.
The last very significant change - in May of 2012 -- made Offers as doable as ever. You can read more about that ....Here
We know even more History, more importantly, let our knowledge help you NOW. Call us at 1-888-282-4697 to discuss the best resolution of your tax problem.
- When Do Your Back Taxes Expire? A Quick and Easy Test to See if you Qualify for an Offer
- The IRS 2012 OIC Rule Changes: Offer up to 75% less?!
- An Unauthorized Biography of the IRS Offer in Compromise
- How Washington Tax Services Does the “Offer” Interview / The Income / Expenses / Assets Model
- Offer in Compromise—How Long Does it Take to Process?