Creative Offer in Compromise Saves Couple $170,000
When the “Browns” hired Omni, they had federal tax liabilities of approximately $230,000. Both Mr. and Mrs. Brown ran small businesses, and they could not come close to paying their quarter of a million dollars of debt.
When Omni sat down with the Browns, they learned that the actual value of their home was nowhere near the $50,000 it was assessed at because of its poor condition. Omni started working on an Offer in Compromise, but asked the Browns to take pictures of their house. When Omni sent in the Offer in Compromise, they sent along the pictures and argued that it would cost more to fix the house than to demolish it. They said that the Browns could not afford a high compromise, because their biggest asset – their house – was basically worthless.
In July 2008, the IRS accepted the $63,210 Offer in Compromise. They decided to value the house as zero because of the pictures and summary of the situation. The Browns were allowed to pay the Offer over a period of 105 months (the length of the Collection Statute Expiration Date) at $602/month. Omni reduced the Browns’ liability to $63,210.00 for a grand total of $168,790 in reduced tax liability.
Find out if an Offer in Compromise is the best tax debt solution for you.
