Cash Tracks Financial Tax Resolution: doubt as to collectability

Friday, August 9, 2024

Colorado Springs: Is a Doubt as to Collectability Offer in Compromise Really Possible?

Do you feel numb and overwhelmed because of owing $20,000 or more to the IRS? Have the IRS notices been stacking up? You hear an advertisement on the radio or see one on the television claiming that the IRS will settle your tax debt for pennies on the dollar. You sit back and ask yourself is this really possible? Or, you think that it is too good to be true?

My answer to your questions is that with the proper guidance and professional assistance you can qualify for an IRS settlement. But, you must complete the IRS process and provide substantiation of your claim. You must also have mountains of patience. The process with the IRS can take time.

How do I know this? About two years ago I had a new client come in with over $80,000 in taxes owed going back to 2013. After completing an analysis of the taxpayer's circumstances and documents, I was able to determine that the taxpayer would qualify for a Doubt as to Collectability Offer in Compromise. I completed the paperwork, gathered the support for what was stated on the OIC form, and had the taxpayer sign the OIC form. I then submitted the package to the IRS.

After we received an acknowledgement letter, a few weeks later, it took about one year to get the initial response of a denial of the taxpayer's claim. Since we felt we had a strong case, we appealed the initial result. After a few months and some some communication with the appeals officer, we finally received the acceptance letter. We were able to settle the taxpayer's $80,000+ debt for $100. We both expressed a sigh of relief. The taxpayer now has two responsibilities 1) pay the $100 and 2) stay tax compliant for the next 5 years.

This case shows that we can help taxpayer's to resolve tax debts they are unable to pay.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Wednesday, August 7, 2024

Colorado Springs: What Does Doubt as to Collectability Mean?

Many taxpayers feel helpless and isolated when they have a large tax bill with the IRS. In many cases they think there is nothing that they can do, but just do their best in trying to make payments. Often times the taxpayer's circumstances do not allow them to really make any payments thus leaving them feeling embarrassed about not knowing what to do or where to go for solutions.

Are you perhaps feeling the pain of IRS notices and liens? With the proper guidance you may qualify for a Doubt as to Collectability Offer in Compromise(OIC) with the Internal Revenue Service (IRS). How does a taxpayer qualify for a Doubt as to Collectability OIC?

If you are suffering from financial hardship this could be the best option for you. However, you must prove to the IRS that your assets an income are insufficient to pay the tax. To apply you must include documents supporting your income and expenses. There must also be a completed detailed financial disclosure. The IRS uses national and local standards to evaluate a taxpayer's ability to pay.

After careful review the IRS may determine that you qualify for a small settlement and are unable to make full payment. If the IRS makes this determination, you have a limited amount of time to make the payment offered. Plus, you must stay tax compliant for the next 5 years or the tax debt will reappear and you may have to start this process all over again.