What is the best time to file an Offer-in-Compromise for my business?

 

This is our Morning Coffee Series, and we’re going to talk about that.

 

The answer is not quite what you think.

 

When is the best time for my business to file an Offer-In-Compromise?

 

Well, the best time is when your business can still benefit from a settlement. Filing an Offer-In-Compromise with the IRS tends to stop most bank levies.

 

But also, filing an offer earlier tends to get more cooperation from revenue officers because they see you’re actively looking to resolve the tax liability.

 

Every situation is different. Every business is different.

 

Many people believe that the best time is when the business profits are low. And having less income does lead to a lower offer amount. However, lower revenues may also affect the business’s ability to pay an accepted Offer-In-Compromise with the IRS.

 

Cash flow is important to any business. But lack of cash flow is really important to a struggling business.

 

Some people believe that filing an Offer-In-Compromise when a business is closed is the best time.

 

But keep in mind that a minimum offer could also be accepted even while the business is still open.

 

It makes sense for a business to plan its Offer-In-Compromise.

 

The IRS will twice consider a snapshot of the business’s finances. They will consider your business’s finances and your offer now, as in the time it’s filed, and then later.

 

So the planning for that offer should also reflect that two-time evaluation. The now and later. You measure it twice; you cut it once.

 

Planning your Offer-In-Compromise with a Tax Attorney can really help you decide on the best time.

 

It can also help you plan the best amount of your offer, as well as the end outcome that you hope to achieve.

 

We’ve still got more questions to cover.

 

And we do that throughout our Morning Coffee Series.