One thing that you should already know about the Internal Revenue Service or the IRS is the fact that they enforce the collection of income taxes. However, in recent years, a lot of people have been reported to owe large sums of taxes to the IRS. Having that said, you should know that it means trouble to owe the IRS that kind of money. Getting out of this situation can be pretty difficult which is why it's important that they hire the right professional to help them out. Some of these professionals are CPAs, tax attorneys, and enrolled agents. This is something that's necessary in order for the IRS to acknowledge the legal position of the client. These professionals will also be the one to make proposals to the IRS such as the Offer in Compromise, Injured Spouse Defense, Collection appeal and some more.
If you're a tax attorney or a CPA, then you should know how important it is to be able to help your client. If you want to help your client, you'll want to explore the option of the Offer in Compromise beforehand. This is because the Offer in Compromise can give a huge discount to the client. While this choice may be optimal for the clients, you have to keep in mind that there are still benefits and disadvantages that come with it. Lowering the client's tax liability by a huge amount is the advantage of choosing the offer in compromise. The downside of this is that the IRS will need access to the information about your current assets. The CRM tax resolution logics also make sure that the taxes of clients are always monitored. It's also important to know that the IRS tends to reject this kind of offer. Informing their clients of that kind of result is the representative's responsibility. Doing this is also necessary so that their clients won't have to be taken by surprise by a sudden visit from the IRS.
If you want to be able to represent your client properly, then you should know everything about the facts of Offer in Compromise. One thing that you should know about this offer is that only about 20 percent of it is usually accepted by the IRS. Making sure that your client will be part of the acceptance range is your responsibility. This is where the usefulness of the tax resolution software comes in. Being able to accurately analyze the situation of your client is one of the most useful functions that the tax resolution software can provide. Being a tax attorney or a CPA who represents your client might be good enough, but you should know how important it is to get the help of the tax resolution software.
Manually preparing the Offer in Compromise is still quite common these days, unfortunately.