Many of our clients come to JK Harris after trying to resolve their tax problems on their own. Kenneth Roberts was one such client. The tension and stress over his tax problem was great, and mounting by the day after he found out exactly what he owed in state and federal taxes.
Facing health problems, Mr. Roberts could not take the frustration and stress any longer; he turned to JK Harris to seek help under the Offer in Compromise program.
An Offer in Compromise is an agreement between the taxpayer and the government that allows the taxpayer to settle their tax liability for less than what they originally owed. The government will generally accept an Offer in Compromise when they feel the taxpayer is not going to be able to pay the full amount and the taxpayer offers a reasonably collectible amount.
Initially, Mr. Roberts was denied on the federal offer he made to the IRS. We appealed the IRS’ decision on Mr. Roberts’ behalf, submitted another offer and I am happy to say it was approved, as was his offer on his state tax liability.
The Offer in Compromise is a long and hard-fought process. It often involves requesting detailed financial information from taxpayers several times due to the IRS’ requirement for the most up to date information. (After all, if the IRS is going to allow you to reduce what you are paying them, they want to make sure you truly qualify and cannot afford to pay!)
In the end, we are happy to say we helped save Mr. Roberts over $51,000 in state and federal taxes and he is now free of the tension that tax liability brings!
