IRS Representation Issues and Offer in Compromise

One of the most difficult parts of the IRS Representation process is ensuring that all parties involved are openly and frequently communicating to ensure that no enforced collections efforts such as a garnishment or levy occurs when an Offer in Compromise is being considered or a Form Installment Agreement signed and agreed to. Below is a sample letter one might send to affect and encourage open consistent communication while requesting that no enforced collection efforts be implemented:

Internal Revenue Service
Atlanta GA 39901

I am writing regarding the above referenced taxpayers and their open liabilities due.

Since January 15, 2010 I have been forwarding correspondence approximately every thirty days to assist the taxpayers to voluntarily set up a formal Installment Plan. I have enclosed copies of only the original letters for your review. On this date a Formal Application was completed and forwarded to process the Installment Agreement. Although taxpayers were not able to get confirmation and acceptance of their Installment Agreement Request, they have voluntarily been paying $400 per month against their outstanding balance. I have attached a recap of the checks that the client has been paying.

On January 10, 2010 a formal garnishment was filed against the taxpayers, which will preclude their ability to meet their ongoing financial obligations. As the taxpayers have for months been diligently been working to get on a formal Installment Agreement and have voluntarily paying as they were, a garnishment appears to be against the best interests of all parties involved.

Please review and advise ASAP as the continued garnishment in this situation will cause undue financial hardship, especially while considering the taxpayer was already making voluntary monthly payments.

Sincerely, John C. Dillard, CPA, PC, Partner in Charge

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for America Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!