Duluth/Suwanee CPA: Keeping Your Tax Filings and Payments Current for All Tax Years for Both Your Business and You Personally
One of the statutory requirements of submitting an Offer in Compromise with both the IRS and the state is that all of your tax filings and payments must be current before submitting an Offer. During the Offer Process we constantly work with taxpayers to ensure that they are fully aware of all of the many nuances of the Offer Process and to ensure that they are compliant with the Offer in Process Evaluation and Process requires. Though the goal of open and clear communication is essential at all levels of the process we frequently discover that clients have failed in one or several parts of the process. To learn more about this process and if it relates to you visit http://www.hiscpa.com/offer-in-compromise.html In the event that you were to submit an Offer in Compromise, while failing to address unfiled or unpaid corporate or personal income taxes including payroll taxes, you will essentially have to start the process over. Below is a sample of a letter you might send to start the process over and to withdraw a previously submitted Offer in Compromise, in such an event:
Internal Revenue Service
Income Tax Division
Enclosures: Power of Attorney IRS notice and Copy of my letter when I submitted an Offer in Compromise
Dear Sir or Madam,
Please cease all collection efforts on the above taxpayers as I have just submitted an Offer in Compromise to address all of the open monies due on their account.
I am writing you in a good faith attempt to come to terms over the above taxpayers' present predicament with the IRS I am willing/eager to supply you with any information that you might need to close your file as I am submitting an Offer in Compromise, Form 656 and Form 433A on their behalf.
The above taxpayers have advised me that they have filed all of their presently due tax returns. I believe that this shows they want to continue as taxpaying citizens and to begin actively paying taxes as they are owed. Please note the taxpayers recently paid the IRS an estimated tax payment of $10,000 to bring their tax payments current.
It is my goal to help in their efforts to return to compliance. Since I have assumed the role as their financial advisor, I have consulted with them, and in good faith I would like to make an Offer in Compromise for the taxpayers to pay as much of the balance as they possibly can.
The taxpayers are an ideal candidate for an Offer in Compromise as they have no substantive liquid assets. I have suggested that they borrow as much as possible from their friends and relatives. With great difficulty, they have arranged to borrow an amount that exceeds their personal net worth. They have arranged to borrow these funds after the acceptance of their Offer in Compromise. These monies would otherwise not be available as evidenced by the enclosed forms. Therefore, I believe this to be a fair and reasonable offer.
Please note that I have advised the taxpayers that after the acceptance of their Offer that they must stay in compliance by keeping all of their filings and payments current for five years. They have further been advised that in the event they do no maintain the above that the previously accepted offer would be voided and the previously abated monies would be reinstated and collection efforts resumed.
Please cease all collection efforts while this Offer is being resubmitted. I appreciate your attention to this matter and please do not hesitate to contact me should you have any questions.
Sincerely, John Dillard CPA, President
To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html
www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Offering Corporate and Personal Income Tax Returns, Offer in Compromise, Tax Advocacy, Tax Mitigation and Tax Compliance, Back Taxes, IRS Representation, IRS Appeals, IRS Collections, IRS Installment Plans & IRS Wage Levies