Helping You Discover Financial Freedom on the Horizon
Offer in Compromise Lawyer in Cape Girardeau
With Birk Law Firm as your Offer in Compromise attorneys, you can expect tax law representation that gets results. We know that tax problems can get serious and have life-altering consequences. If you owe money to the Internal Revenue Service (IRS), we can help you settle. A settlement can help you significantly reduce the amount you owe. A settlement can also prevent the IRS from taking more serious legal action. An Offer in Compromise (OIC) is an alternative way for the IRS to collect debt while giving debtors some breathing space.
At Birk Law Firm, our Offer in Compromise lawyer knows the ins and outs of how the IRS operates. Kelvin Birk has a large practice area in tax law and is also a Certified Public Accountant. By employing the knowledge, experience, and insights gained from decades in both of these fields, he gets results for his clients. Call us today at 573-332-8585 to schedule a free initial consultation and to find out why Birk Law Firm is trusted in Cape Girardeau to help you reduce your tax liability burden.
Why Choose our Offer in Compromise Lawyer
Increase Your Chances of a Fair Settlement with the IRS
The IRS does not accept most Offers in Compromise. According to a recent government study, this is true for both individual taxpayers and business taxpayers. The rate of acceptance for individual taxpayers is just over 40 percent, while it is only just over 20 percent for business taxpayers. That is a real problem, because debt can impact a person’s quality of life and productivity. The same is true for a business––in fact, debt can ruin a business.
So, if you want to get your Offer in Compromise accepted so that you or your business can start making affordable payments, you need to be strategic about the way you handle an OIC application. Here’s why you should choose Birk Law Firm when you are behind on your tax payments and need to work out a settlement with the U.S. Government.
- We get results. We help clients get their OICs approved on the first attempt, but if an OIC is rejected, we are ready to respond immediately.
- We are experienced. We get results because we know what we are doing. With a combined 50 years of experience in accounting and the law, we know what the IRS wants or looks for when it determines whether to accept an OIC. We also know the forms, filing, and documentation needed to submit successful offers.
- We have built a network. We have a network of people and resources that allows us to be efficient and to provide well-supported and well-argued offers.
- We negotiate. The OIC is effectively a tax audit, and we have extensive experience with that and have learned how to handle and work with IRS personnel, including Offer Specialists.
- We are clear communicators. Whether it is communication with you or the IRS or another party, we communicate on your behalf and with you, and we do so clearly and consistently. We explain all your options, so you know exactly where you stand and what to expect.
- We offer free initial consultations. We know you are already worried about money. We offer a free initial consultation with no obligations attached. This helps us get to know you and your situation as well as helping you get to know us.
How Our OIC Tax Lawyer in Cape Girardeau Can Help
Get Your Finances and Your Life Back on Track
There’s a lot at stake when you owe money to the IRS. It’s not just your finances but a lot more. We help you understand all the important elements of an Offer in Compromise application and then use our resources and skill to maximize chances of an approved settlement in your favor.
There’s a lot at stake when you owe back taxes to the IRS. A few of the risks include:
- If you get a tax refund in a later year, the IRS can take it.
- In addition to the tax bill, the IRS will charge interest.
- The IRS will also charge significant penalties.
- The IRS could file a federal tax lien.
- The IRS can seize assets (like wage levies, accounts receivable levies, or bank levies).
- You may not be able to leave the country if you owe a significant amount of money or are seriously delinquent.
- The IRS could turn your account over to a private debt collection agency.
Getting an OIC approved can help you avoid the above risks. Eligibility for an OIC requires that you:
- File all tax returns
- Received a bill for at least one tax debt included on your OIC
- Make all estimated tax payments for the current year
- Make all required federal tax deposits for the current quarter, if a business.
Factors Determining Financial Hardship
If you meet the eligibility requirements, the IRS will then consider the following factors to determine if you meet the financial hardship that would justify a settlement. These factors are:
- Asset equity
You will not qualify for a settlement if:
- You have unfiled tax returns.
- You have a history of not paying your taxes.
- You have deliberately avoided tax payment.
- You are a tax protester.
- There’s a pending bankruptcy proceeding.
- Your tax liabilities have been referred to the Department of Justice.
How We Help
We help you throughout the entire process. We complete the OIC and ensure that it is thorough and well-supported to optimize chances of approval upon the initial request and to minimize the risk of a returned or rejected OIC.
We will also negotiate aggressively yet competently with the Offer Specialist to make sure the settlement works for the IRS generally, and for you particularly. If the offer is still rejected, we will timely appeal it.
We take care of all the paperwork, communication, negotiation, etc., so that you can work on all other aspects of your life. Herein is the real advantage of hiring Birk Law Firm: we can help you manage stress and anxiety and add the element of confidence while we take on the challenges of your OIC matter.
Because interest and penalties could be accruing, time is of the essence. At Birk Law Firm, we incorporate more than 50 years of combined legal and accounting experience to get tax debt settled in your favor. We act fast, and we act strategically.
Offers in Compromise FAQ
Finding Answers and Solution through our Offer in Compromise Attorney
Tax debt is difficult to handle. Dealing with the IRS is stressful and emotionally exhausting. It is also confusing. To make sure you have a better understanding of what an offer in compromise is with respect to your tax debt, below are general answers to some of the most common questions our clients initially ask us.
To get more specific answers about your tax debt, it is always best to call our Offer in Compromise attorney at 573-332-8585 to schedule a free initial consultation.
An Offer in Compromise is an agreement between you, as the taxpayer who owes money, and the IRS, who wants to collect the money. This agreement settles your tax liabilities for less than the full amount you allegedly owe. There are three types of OICs:
- Doubt as to Collectability. Doubt exists that you may never be able to pay the full amount of the taxes, penalties, and interest you owe within the time remaining in the collection statute.
- Doubt as to Liability. Doubt exists as to the accuracy of the tax liability assessment. On the one hand, you may have been improperly assessed penalties or an examiner during a tax audit failed to properly review all the evidence.
- Effective Tax Administration (ETA). The IRS may entertain a compromise even when the assessed tax is correct, and you could potentially pay the full amount, but an extraordinary circumstance exists. An extraordinary circumstance is a situation where paying the tax in full could create an economic hardship or would be unfair, inequitable, or against public policy.
An experienced tax law attorney will identify and help prove which OIC type applies in your situation. Getting it wrong can mean delays, and delays could mean the accrual of more tax liabilities.
No, you do not pay the entire tax settlement at once, but you do have to start paying as soon as you file Form 656 (the form used to propose an offer in compromise).
There are two options to pay the IRS-accepted Offer in Compromise amount:
- Lump Sum Cash Offer. This option is not a one-time lump sum payment but allows you to make five or fewer installments within a certain time period (5 months to two years or a little longer). The first payment is 20% of the total offer amount, which is sent to the IRS along with your OIC.
- Periodic Payment Offer. This option allows you to make the first payment when you file the OIC. You must continue to make monthly installments during the investigation of your OIC application. If your OIC is accepted, you will continue to make monthly payments until the settlement is paid in full.
These payments are all non-refundable and have certain conditions attached to them. You should speak to a competent tax law attorney to make sure the option you choose is the option right for you and your specific financial situation.
You cannot file an OIC letter if you are in the middle of a bankruptcy proceeding. Once the bankruptcy proceeding closes and debt is discharged, you can file an OIC letter.
At Birk Law Firm, our bankruptcy attorney handles all types of bankruptcy proceedings. We can guide you through bankruptcy and then the OIC process, relieving you of the stress these financial matters create and making the effort to reach financial freedom more seamless and cost-efficient.
Processing times vary quite a lot, depending on where your OIC application was filed and whether it initially gets approved, returned, or rejected.
Generally, give the process a minimum of six months to hear from the IRS on whether it accepted your OIC. If it does not accept your OIC, then it was either returned or rejected, and both of these two results adds more time on the clock.
If an OIC was returned (as opposed to rejected), then there was probably a procedural, clerical, or administrative error. Common reasons for returned OICs include but are not limited to:
- You failed to include or pay the full amount of the application fee.
- There is missing information in your OIC.
- While the Offer Specialist considered your OIC, additional liabilities accrued, so the pending OIC became outdated.
Returned OICs cannot be appeals but must be resolved. The latter simply means you must correct whatever the problem is. For example, if the problem is missing information, then provide the IRS with that information.
The IRS rejects many more OICs than it accepts. If the IRS rejected your offer in compromise, all is not lost––though many debtors do not know there is recourse after an OIC rejection. You can appeal a rejected offer in compromise within 30 days of the date of the rejection notice.
The pros and cons of an appeal are many. For example, appeals officers are usually more senior than the Offer Specialist (who originally denied your OIC). Appeals officers are quite busy, though, and have more room to negotiate than Offer Specialists, so both of those factors work in your favor.
To convert a rejected OIC to an approved one, success is often more about making the right arguments at the right time. With a smart, resourceful OIC tax attorney representing you, your chances of doing so increase exponentially.
ALL YOUR LEGAL NEEDS
Why Choose Birk Law?
Birk Law Firm is a small firm by choice that is big on client services. Attorney Kelvin Birk and his team are responsive to their clients’ needs. When we sign on as your law firm, you can count on us for strong legal counsel, from negotiations to settlement to trial.
Our clients benefit from the intertwining of Kelvin Birk’s legal and CPA background and experience. We provide well-rounded advice to solve both legal and financial issues and to come up with creative solutions. We use modern technology to deliver legal services in a more efficient and client-focused manner than was previously possible.
We provide personalized and compassionate service. We believe that each client’s matter is the most important matter in the world to them, and we strive to treat it that way.