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Offers in Compromise

Offer In Compromise
People who do not file their returns usually fail to do so due to some traumatic occurrence in their lives. For these people, a deal can usually be made within the collection division of the IRS. However, the IRS can treat failure to file as a criminal act. Before any deal can be made with the IRS, at least the past six years returns must be filed. If you fail to file a return(s), eventually, the IRS will file a return on your behalf based upon what has been reported under your Social Security number/Federal ID number. In these cases, the IRS will not consider itemized deductions such as mortgage interest, state income and property taxes paid, charity contributions, or medical deductions.

Additionally, the IRS will not consider a change in your personal exemptions (ie child moving off to college or the birth of a child). Basically, the IRS will give you the standard deduction with the minimum personal exemptions in order to maximize your tax liability. The Substitute for Returns (SFRs) can be replaced if a replacement return is filed timely with a letter explaining why the return is late. However, if you let the SFR remain on your record for an extended period of time, the more difficult it will be to replace the return with a correct return.

In short, don’t wait; correct the return(s) as soon as possible.

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Stacy, you’re in a tough business, but you’ve always handled yourself well! You have shown real compassion, and were able to make me realize how much you cared about what happened to me, even when I wasn’t always the best client! These things never turn out good, but I feel I can move on with my life now, and deal with some other issues in front of me! I Thank You for all you’ve done for me, and want you to know I will ALWAYS have you in my thoughts and prayers, and hope that we can stay in touch! I am sure I’ll see you someday in Church, if nowhere else! Take care, and please know that I will always be grateful to you and Wyatt!
JimGreenville, SC

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