A considerably large amount of taxes needs to be paid by some individuals these days to the Internal Revenue Service which was never allowed to happen before. People who are not able to pay for their taxes are in dire need of help and they would do anything to free them from the trouble that they are currently facing. There are a lot of instruments that the CPA, Enrolled Agent, or Tax Lawyer may use for the process of settling the liabilities that the clients have and some of them are Collection Appeal, Offer In Compromise, Collection Due Process and Installment Agreement, and Injured or Innocent Spouse Defense.
Among all of these instruments that were mentioned, the one that is commonly used these days is the Offer In Compromise since there is a possibility that the tax slate of the client will be reduced or might be even wiped clean. There are also positive and negative effects derived from this instrument even if it is considered as the most useful one as of today. When it is highly possible that you can get a discount of the amount that you are supposed to pay for the tax that you owe to the Internal Revenue Service, there is a risk of having to divulge every information about your assets to them. Since there is an Internal Revenue Service machine that is able to monitor all of the taxes, you cannot lie about your own. Since your client is expecting a lot from you, it is only proper to inform him of everything that progresses from his tax evasion case even if it means that the appeal is not being accepted, so that when someone from the Internal Revenue Services will come knocking at their door, they will not be alarmed. You may think that the Offer In Compromise is very advantageous, but what you don’t know is that only 20% of the total number of appeals will be accepted. With that being said, you need to know what it is exactly what you have to do so that you will belong to the 20% that is being accepted by the Internal Revenue Service. Your problem might be diagnosed after it will be analyzed by the tax resolution software logic which you need to take a hold of. This can also help determine what chance you have in joining the 20% that are being accepted by the Internal Revenue Service.
According to a recent survey, there are still representatives who are still using a calculator, pencil, and their brains to have the cases for the Offer In Compromise done.