George Consulting Inc.
Offers in Compromise
you have a liability to the IRS, please read the following
information carefully. If you feel you qualify, contact
me and we can discuss it.
My name is Raef S. Guirges and I can be reached at 310-329-1963.
Because I am so sure of myself and my knowledge of the Offer
am Willing to Share Some of the Information
in Compromise has been built into the tax code since 1914.
It gives the IRS authority to compromise liability.
Certain changes over the last three years have made compromising
a liability much easier than ever before. Now there
is much less bureaucracy built into the process, than in the
are three basic requirements for an Offer in Compromise.
But before I go into them, let me tell you what is not
required. It does not matter how long you have owed the
tax. It does not matter how much you owe as long as your
total debt is above (around) $10,000. However, we
are always testing the IRS for lower amounts. We just filed
an Offer on a $7,000 liability. If they accept it for processing,
I'll revise the above figure. If you owe less than the
above amount, an Offer might not be the right solution for
you. But that does not mean a solution does not exist
must be paying and filing on time and you must agree to
pay and file on time for five years. If you have
un-filed returns, I can prepare them for you.
If you pay estimated tax payments, you must pay them quarterly.
Paying when you file is not good enough. You may need
to learn about the Annualized Estimated Tax Method,
if your income is variable. Talk to your tax professional
EQUITY IN ASSETS
arrive at the minimum offer amount, you need to calculate
Net Equity in Assets. Net equity is derived by taking the
value of the asset and subtracting the obligations against
it. Example: if your car is worth $10,000 and you owe
$9,000, you have $1,000 in net equity. The offer cannot
be lower than your Net Equity in Assets. The IRS
is not interested in the personal property you own, but they
are interested in whatever is recorded. That includes things
which are recorded with the County Recorder, such as your
home, car, boat or plane. They are also interested in
the value of assets you inform them about, such as the balance
in checking or savings accounts, the net value of your credit
cards and the cash value of your life insurance. They
also look to your past tax returns to determine if you own
stocks, bonds, IRA's etc. etc. Please understand that the
offer process is complicated, and very much case dependent,
many subtle things can legally and ethically be done to correct
problems with net equity in assets as long as the asset
is not disposed of for less than full value.
ago, I told you that you have to be compliant for five years.
That's sixty months and sixty months is a very important time
period for the IRS.. If you have $100 above ordinary and necessary
income and expense as defined by the Internal Revenue Service,
using both real figures and figures derived from National
Standard Expenses, that $100 will cost you a minimum of $6,000
($100 x 60 months). That's why your income and expense must
be carefully and professionally analyzed before an offer is
that sounds really terrible, most of my clients do not
have income above expense. Those that do, and are
self employed, can make minor adjustments in business expenses
that can bring that figure into line.
do not file offers for people who do not qualify.
OF THE PROCESS:
I determined that you qualify, the paperwork needs to be completed
and filed. It is filed with a group called Special
Procedures. There is a Special Procedures Branch at
most regional IRS offices. Once it's filed, you wait about
four to six weeks before a letter arrives stating that your
offer has arrived and looks like it can be processed or it
is returned for some sort of correction. Once you get that
letter, it will be (about) another four months before you
receive a letter from an Offer Technician or Revenue Officer
who will investigate your offer. He will ask you to
provide him with proof of income /expense and assets /liability,
all flowing from the information you gave them when you filed
the offer. About two to four months from that time, your offer
will be accepted, modified or rejected. Very few offers are
rejected. Most offers rejected outright are rejected
because the taxpayer lied. The taxpayer may have forgotten
about an asset that was discovered in investigation or he
may not be aware that an asset is in his name. Because
we do not file offers which will not qualify, we have a 95%
IRS frequently requires small modifications from the original
amount of your offer, which when agreed upon, is then accepted.
In terms of Offers in which a higher dollar amount is demanded,
most of the time, the difference involves the blue book of
the car and does not add up to much.
the offer is accepted, the payment must be made within a time
period specified by the offer or (you) when it was originally
filed. Once paid, the liens are lifted and the taxpayer
is free of the liability conditional on current compliance.
Yes, free of liability. You are not required
to come up with all the money at one time. The IRS allows
a pay-off on the offer with certain limitations.
job is to guide you through to a successful conclusion from
the initial investigation of qualification, to the receipt
the letter of acceptance. I do that all by mail, phone,
facsimile and E-mail. I have had clients all over the United
States. With instant communication available, it's
relatively easy. I'm located in Torrance, California.
you wish to see me personally, you can always come down my
office. You are certainly welcome. Just call for an
most important question is do you qualify?
you will recall, the first qualification is Income above Expense.
For most of the self employed people I deal with, once the
business, personal expense and tax is computed no excess income
is left. If you qualify for an offer and you are making
monthly payments to the IRS, I can secure a hardship relief
to eliminate the payment arrangement.
you feel you have so much excess income, making the payment
to the IRS is no struggle for you...you should probably
stop here because you would not qualify.
key question is this: Assuming you have no income above
expense, what percentage of all the tax you have due, would
your Net Equity in Assets pay off.....some examples.
1 - Let's say you have $20,000 in Net Equity in Assets and
owed the government $15,000. An Offer is not appropriate.
2 - Let's say you owed the government $40,000 and had net
equity in assets of $20,000. That's a pay-off at 50%
and that sounds great however, could you really convert your
assets and/or get that much by the time you had to pay? In
most cases, probably not, so again if that's the case, it
may not viable for you. But there are things about this
situation which can be explored. Call me for a consultation
if this is your situation.
3 - Again you owe the government $40,000, but have $6,000
in Net Equity in Assets and could, by whatever means, come
up with $6,000... an offer of 15% of the total liability completely
paying off the IRS sounds great to me. How does that
sound to you?
4 - Probably above 70% of that's basically as much information
as I can give you without talking about your personal situation.
It would be in your best interest to get more information.
Compromising liability makes good business sense. My
phone number again is 310-214-5208 and my telephone consultation
is free of charge or obligation.
have no net equity in assets other than the car. If
$40,000 is owned and an offer of $2,000 is made and accepted,
that is 5% of the liability, that is a great offer...
you are asking for this information because you, or someone
you know, has a tax problem and needs assistance, why should
you ask for my assistance?
been helping taxpayers with Offers since 1980. In that time
I've really lost count of how many offers I've successfully
those who are far away from my office in Torrance,California
the questions come up, can I assist you at this distance as
effectively as I assist local taxpayers. The answer
to that question is yes. Your offer will be filed
at your District Office. My Power of Attorney
will be filed with your regional center. The IRS is everywhere...and
the exact same rules that apply in the district office in
Los Angeles County apply to all District Offices.
know IRS and the process upside down. In fact, a number of
accountants and other tax professions, have learned from my
Owing the IRS is dangerous...I can help you resolve
the problem, but you have to take the first step.
Give me a call