Company - IRS Offer in Compromise -Please Advice
Q.I run a small IT Staffing company in the Midwest. We have a penalty and interest liability of around $90,000 due to late payment of payroll taxes from 2000 & 2001. We lost an appeal. I am preparing to file for a offer in compromise. In the meanwhile IRS levied our bank account - they got only $500. I am looking at the 433B & 656 forms. We do not have any assets except for receivables that goes towards supprting ongoing business related payroll and administrative expenses, besides paying down a bank term loan. What should the offer be - We cannot afford right now to pay more than $5000. Would they aaccept it. Business is not doing too good. We really dont want to get into a installment plan. Please advice.
A.No one of any salt here is going to give you a figure for an offer. You need to sit down with an offer professional (and NOT a JK Harris pennies on the dollar radio and TV scam artist) and look at the numbers. My first glance is your payroll is VERY high and if some of this number is for your principals, they need to take a hard look at things, as IRS can come back and assess a trust fund recovery penalty and THEY are personally liable. If you have gotten to the levy stage, you are foolish not have retained a qualified tax professional at this point and you need to do so ASAP
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