Offer In Compromise Accepted
Client Name: Stan S.
An Individual, Stan S. had liability of $101,000 with the Internal Revenue Service when he retained Capstone Tax Consulting, Inc. When Capstone was initially engaged, our client was already in a payment plan of $338 per month. However, after evaluating his case with a Senior Associate in our initial consultation, it became clear he was a great candidate for an Offer in Compromise (settlement). Once Stan engaged Capstone Tax Consulting, Inc., we advised our client to discontinue making his Installment Agreement payments. Capstone maintained a hold of enforced collection for Stan while we perfected his 433-A, Collection Statement for Individuals. Four months later, we submitted an Offer in Compromise for $100 saving our client $100,900. Some time afterwards we received a letter from the IRS accepting our Offer.
It’s important to have a licensed professional review and “perfect” financial information before being submitted to the IRS. In this case our client represented himself and was paying $338 per month. If he had stayed on this agreement for the life of Collection Statutes (10 years from the date the return [with liability] is filed or additional tax is assessed, whichever is greater), he would have paid $40,560 or more. While there were savings involved in the Partial Pay Installment Agreement our client had, they fall short of the savings Capstone Tax Consulting, Inc. negotiated for him. Furthermore, Partial Pay Installment Agreements are under a lot of scrutiny and will default if there is an accrual of liability, a missed/underpayment payment, unfiled or not timely filed return, and the IRS will review the collection potential every two years which will put you back into open collections.