There is value to having a tax professional handle complex tax preparation and tax planning issues. We have heard many a taxpayer who has IRS debt problems say that rather than paying a fee to a professional who specializes in resolving IRS debts that the individual will resolve the problem himself.
With respect to criminal trials, there is an adage that says “A lawyer who represents himself has a fool for a client.”
Apparently an attorney acting on his own behalf found this adage also applies to making an offer-in-compromise (OIC) to the IRS to settle tax liabilities owed to the IRS. In the case of Fincourt B Shelton PC, TC Memo 2013-273, Dec. 59,707(M), the Tax Court found that an attorney’s payment on behalf of his professional corporation did not constitute a valid OIC for its remaining tax liabilities.
The attorney failed to submit IRS Form 656, Offer in Compromise, and the payment required with an OIC. The attorney argued that the revenue officer handling his case had verbally agreed to accept his OIC. However, the revenue officer had informed the attorney that she, as a revenue officer, did not make OIC determinations. The case states that she informed the attorney that he would have to submit the application fee and 20 percent of the amount offered so she could forward the offer to an offer specialist.
The court found that there was no affirmative misconduct on the part of the IRS and that the attorney failed to prove that there was any misrepresentation by the IRS. It was also noted that taxpayer had not received a written notice of acceptance of an OIC from the IRS.
Note: Because taxpayers who have IRS tax debts have various options as to how to become compliant with the IRS and must adhere to IRS deadlines, if you have IRS tax debts, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation.
You can also schedule a consultation at Click Here. To learn more about various tax and business services, visit Tax Preparation Services and Small Business Accounting Services
Copyright © 2014 Keystone Financial Solutions, P.C. All rights reserved. BE SURE TO READ THE DISCLAIMER PAGE: Content in this blog is for educational purposes only and should not be considered as the rendering of tax, legal or investment advice. The publisher of this blog makes no representations as to the accuracy or completeness of any information herein, will not be liable for any errors or omissions, and shall not assume liability for any losses, injuries, or damages from the display or use of this information.
