SETTLE TAXES THROUGH OFFER-IN-COMPROMISE By Angel Dayan & Associates (213)-365-1040

Thank you for looking at this report. We have written this material for your better understanding of the "Offer-in-Compromise" process. We hope that it will make a difference in your life and in your decision to solve your tax problems. It does not matter how much you owe, what kind of taxes they are, how many years or whose fault it was. You may also be the "innocent spouse" that qualifies under the new rules. We can provide you with a guaranteed solution.

Before you pay your taxes in full, find out first if you will qualify to pay it at a lower amount, have it reduced, erase it in bankruptcy or pay by installment. One of the most effective way that is now becoming a very popular method of settling old taxes is through what is called an "Offer-in-Compromise" procedure. Most of our government taxing institutions are known to accept payment of old taxes for less than what are owed. The Internal Revenue Service, the Franchise Tax Board, the State Board of Equalization, and the Employment Development Dept. all acceptreduced tax payment offers. The "Offer-in-Compromise" will even include the penalties and interests that have accumulated in time with taxes. Self-employment tax (the mandatory social security contribution) and medicare tax can also be compromised. This report, however, deals with the new IRS rules.

"Offer-in Compromise" has been introduced by tax practitioners in sweet sounding words like "settle taxes for pennies on the dollar," "settle taxes for less," and "pay only what you can". While the IRS offer process has been tough in the past and usually not an easy one to complete, it has now opened up new avenues for settlement consideration. We want you to take advantage of the program. Now is the best time to submit an offer. New rules for settlement offers have recently come up and there are now three (3) ways to settlement, following the same set of complicated steps to adhere to. For a long time, the IRS policy states that "the government will accept an offer when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential. The goal of the IRS is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government. It is a legitimate alternative to declaring a case as currently not collectible or to a protracted (lengthy) installment agreement" that many taxpayers do not complete because they lose their job or business, file bankruptcy, retire or get sick. The offer-in-compromise process then becomes their last resort. Its objectives are, as follows:

a) to resolve unpaid taxes which cannot be collected in full or on which there is a legitimate dispute as to what is owed.

b) to effect collection of what could reasonably be collected at the earliest time possible and at the lease cost to the government.

c) to give taxpayer's a fresh start to enable them to voluntarilly comply, with the tax laws.

d) to collect funds which may not be collectible through any other means.

In order to be successful in this program, a professional tax practitioner should assist you in different areas of its process that are explained in this report. That should include the final offer investigation (complete financial background physical check-up) that is done with an IRS visit to your home before an offer is finally accepted. But first and most importantly, you must qualify to apply for it. Someone who is trustworthy and knowledgeable of the process must be able to tell you if this is the direction that you must take. When your case has been wrongly evaluated, it may just be a waste of your time and money. And second when you do qualify, your offer should be acceptable to the IRS. An acceptable offer is not an arbitrary amount taken from your heart. It must have a scientific basis (a dollar value) that is determined via a complex technical and mathematical process. A lot of personal discretion may be exercised in personal assets evaluation, considering exemption amounts and different approaches to justifiable and acceptable values. Proper planning may also be involved such as asset protection or estate planning and even bankruptcy filing that will lay the groundwork for the offer. The third important step is to be able to submit what is called a "processable offer". Many offers are rejected for not being processable, mostly those that are done by taxpayers themselves who did not have professional representation (help). The fourth step to consider are the three (3) options to pay the amount offered. If it is a Cash Offer, it must be paid in full within 90 days or less. A Short-term Deferred Offer allows payment for more than 90 days but within two (2) years. There is also a Deferred Payment Offer option that allows payment to be made in more than two (2) years or up to five (5) years but it must be paid within what is called the "Collection Statute" (the remaining time period to legally collect the tax). Our clients who come to our office for this service are informed first of the legal process involved. We then qualify them and tell them that they can submit an offer. We assure them of their high approval or disapproval rating whichever one applies. When they do not qualify, we inform them immediately and then we provide them with other alternative solutions such as bankruptcy filing that may discharge old income taxes.. One of our Associate who is a CPA, a Lawyer, or an EA (Enrolled Agent) will help you from start to finish. We believe that Professional Tax Practioners have a responsibility to treat clients this way in tax practice. We also make sure that clients understand that there is nothing easy when it comes to not paying government taxes. That is why taxes and government loans are generally exempt from the discharge in a bankrutpcy. We also believe that we cannot mislead people into thinking that "Offer-in-Compromise" is an easy process. It is not to be considered an excuse not to pay taxes. The acceptance of a valid, adequate and processable offer is an IRS long standing policy. When the offer is done properly, this IRS policy will work for you. However, we must advice you not to entrust this work to yourself alone unless you have adequate experience with the process. You may have the purest and honest intentions when settling with your taxes, but if your offer documents are not done legally and correctly, you can expect a rejection letter. It always pays to have tax professionals guide you in this process so you can have the peace of mind that you rightly deserve. Always equate the cost of hiring professionals with the savings you could get. Indeed for some, their tax settlement will be "for pennies on the dollar". If you have tried this process in the past but failed and you want to try it again with the new rules, let us help you. We can appeal or resubmit your rejected offer, file a bankruptcy tax discharge, or invoke the "innocent spouse" argument. We want to help you.

(Angel Dayan, EA, Tax Principal of Angel Dayan & Associates, wrote this Free Special Report. He is an Enrolled Agent admitted to practice in California and in 50 States. He is a TaxProblems Resolution Specialist, a Professional Tax Consultant currently completing a Masters Program in Tax Representation. He is a Graduate Fellow of the National Tax Practice Institute, an Accredited Tax Advisor and Accredited Tax Preparer. He practiced as a Certified Public Accountant in another country's jurisdiction before specializing in US Tax Laws. He has been in Tax Practice in the US since 1982 and has prepared over 7,000 tax returns in his career. He can be reached at (213)-365-1040 or (818)-567-4736 or you can visit his website at www.taxwork.com. You can also email him at: angel@taxwork.com.)