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Author: acm4tax Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Re: need advice on late taxes Date: 11/10/2003 3:14 AM
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I've done several offers in compromises for my clients.

Yes it does take time. All the prior years returns have to be filed and in IRS's system before they can consider any offer. It takes perhaps 12 weeks to process a tax return. If Roger's asking for the last three months receipts, he's just getting the offer together. And as of Nov 1st, there's a $150 fee that IRS requires. If your offer is accepted, it's applied to your offer. If it's not, then it's forfeited. There was no fee prior to Nov 1st.

Call and make an appointment with Roger. Bring your receipts. Have him prepare the 433 with you. Sign the offer with him. Make sure you get a copy of the offer. Once the offer is in the works, a hold is put on your account and no collection efforts will be made during that time.

Did he prepare all the missing returns for you? Make sure you have copies of those. You paid for them.

Some times the automatic mailing machine (so it seems) doesn't get the message that an OIC is in process. Never ignore IRS letters. If Roger doesn't have an agent's name and number to whom he spoke to give to you, you will have to follow through with IRS on your own or hire another tax representative.

Give Roger an ultimatum, demand an update on all phone calls he's made on your behalf, tax returns he's filed for you, and copies of all returns he's processed. The fault may not lie with Roger if he's still waiting for info from you to complete the returns. If all the returns are not filed, have you provided Roger with all the data he needs to complete them?

If he's not done his job, then you may have to take him to civil court to recover the fees you paid him. At any rate, you may need to contact IRS and ask them what returns are in their system and let them know the unfiled returns are forthcoming. Tell them also that you are putting together an offer in compromise.

BTW, most states do not have Offers in Compromises. If you live in a state that has an income tax, you will have tax issues to settle with them as well. Every state is different on how they handle the collection of those taxes. Some states every four years or so have an amnesty period where just the tax has to be paid. Virginia just finished one. Not all states have amnesty programs. But in light of the financial crisis so many states are in, you might see more states have such a program to get people that are in arrears to file and pay.

Best wishes for a reasonable outcome.

Arleen
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