We have a substantial amount of tax debt that is burying us financially...we are making payments but we also need a new car. There is a lien on our home so we are unable to get either a consolidation loan or a loan for the car...we both work and so having two cars is non-negotiable. Does anyone know if it's worth if to file an OIC on our own...or should we hire a tax attorney?
2007-06-05 09:46:43 · 5 answers · asked by Javacat 2 in Business & Finance ➔ Taxes ➔ United States
You should consider hiring a tax professional, but Enrolled Agents are on the exact same ground as attorneys and are far less expensive in most cases.
Unfortunately, most of the tax negotiation industry isn't looking out for your best interests and the IRS couldn't care less about reigning in the bad actors. Be VERY careful in who you consider hiring.
Additionally, the vast majority of Offers are rejected and under current Offer rules, you must either make monthly installment payments during the time the Offer is being considered or you must submit a 20% NON-REFUNDABLE deposit with the Offer.
2007-06-05 14:00:37 · answer #1 · answered by taxman94066 2 · 0⤊ 0⤋
You should at least talk to a Tax Attorney, before doing something like this. An attorney can probably save you money in the end, because of his or her knowledge of the system. If you can do it yourself and get the same result an ethical attorney will tell you up front, and may even give you some free advice to get you started. But ask around, because an unethical attorney can take you for a ride.
2007-06-05 16:58:23 · answer #2 · answered by New Dog Owner 4 · 2⤊ 0⤋
ninasgramma's answer is fatally flawed. If you were confident you could handle an OIC properly yourself, you would not have asked this question. Based on my own reading of the rules, and previous answers from people who are generally right, I recommend anyone considering an Offer in Compromised consult an attorney.
2007-06-05 20:06:34 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
If you have confidence in your ability to go through the OIC paperwork, do it yourself. You can hire an attorney if you want, but it will cost you.
If you don't want to do it yourself, I would suggest you hire an Enrolled Agent. They are generally cheaper than attorneys and are fully qualified to represent your interests before the IRS.
Here is the website for the National Association of Enrolled Agents. You can contact an EA in your area through this website.
http://www.naea.org/MemberPortal/
2007-06-05 17:02:27 · answer #4 · answered by ninasgramma 7 · 1⤊ 1⤋
Hire an attorney. If you are making payments, the IRS will not let you off the hook voluntarily.
2007-06-05 16:54:51 · answer #5 · answered by regerugged 7 · 0⤊ 0⤋