Feb 3, 2017

A Negotiated Offer in Compromise

An individual hired Clear Creek in June of 2015 to resolve her personal liability of $43,000 with the Internal Revenue Service. Our client is a 68 year old widow living on only Social Security Income, and a small pension. From June through September of 2015 our client was informed by another company that this woman had missing returns that needed to be filed, and also gathered Form 433-A: Collection Information Statement for Wage Earners and Self-Employed Individuals to determine the best possible resolution for her. Once the woman hired our firm we straightened out an Internal Revenue Service mistake with the taxpayer’s Social Security Number, and we determined that an Offer in Compromise was the best way to resolve our client’s tax matter. From that point forward, Clear Creek worked with our client to put together a comprehensive and in depth Offer in Compromise to present and submit to the Internal Revenue Service. For the following 8 months, the Internal Revenue Service continued to ask for additional time to review the Offer in Compromise. The only foreseen issue with the Offer in Compromise was her equity in her home. Clear Creek was, however, able to establish that our client was unable to obtain equity out of her home due to her low monthly income. Shortly after this conversation we were able to confirm that the Offer in Compromise would be accepted for $500, saving our client $42,500.