Taxpayers Jam the IRS With Their “Offers in Compromise”

So many taxpayers are trying to make deals with the Internal Revenue Service to settle tax bills that the IRS is facing inventory backlogs and processing delays, leaving taxpayers unsure if or when their tax liabilities will be resolved.

In honor of our federal government’s “Tax Month,” I thought you might enjoy more proof that nothing is as certain as taxes even if you have to wait in a long line in order to pay!

Have you heard or seen the radio or television ads promising to help you get the IRS off your back for myriad tax troubles? It seems these ads work so well it has actually created a growing logjam of such cases at the IRS.

Recently, Forbes reported on this problem in an article titled "Trying To Come Clean With The IRS? Get In Line." As reported in the article the number of “offers in compromise” has jumped 28% from fiscal year 2007 to fiscal year 2011. In real numbers, that represents 46,270 offers in 2007 and 59,411 offers in 2011. Here’s the rub: The number of IRS staff members handling the filings has decreased over the same period.

So, if you have filed an offer in compromise, but it has not been processed, don’t despair. The IRS is well-aware of the problem. If you have a “promised date” (when the IRS was to get back to you), then likely the IRS will give itself more time with an extension. Should the logjam continue, expect to get an “interim” letter.

You can learn more about  estate tax planning  on our website. Be sure to sign up for our free e-newsletter to stay abreast of issues like these that could affect you, your loved ones and your estate planning. 

Reference: Forbes (April 12, 2012) "Trying To Come Clean With The IRS? Get In Line"

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Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.