Roni Deutch Sends An Open Letter To The IRS Regarding Their Offer In Compromise Program

North Highlands, CA – Roni Deutch has released a letter to the IRS in response to a recent questionnaire asking recipients how satisfied they were with specific aspects of the IRS’ Offer in Compromise (OIC) program.

“Many—if not all—of the tax attorneys at my law firm, Roni Lynn Deutch, A Professional Tax Corporation, received your questionnaire,” noted Ms. Deutch in her letter. “The attorneys at my law firm are preeminently qualified to answer your questionnaire as they solely practice federal taxation law. Specifically, we are the nation’s largest tax resolution law firm and have been helping American taxpayers end IRS collections, resolve IRS tax liabilities, and return to and remain in compliance with all IRS regulations. For the past seventeen years, my law firm has been assisting IRS taxpayers resolve their tax debt through many of your tax resolution programs, including the OIC Program.”

“Each of my firm’s attorneys has independently responded to your questionnaire with their viewpoints in regards to specified aspects of your program,” continued Ms. Deutch. “However, collectively, my law firm has compiled the below list of suggested improvements for the OIC program. Many of the below improvements and requests were sent to you on December 14, 2005—the last time you sent out a questionnaire to taxpayers and tax professionals about the OIC Program. However, in those three years, the IRS has done nothing to act upon our requests. Thus, I resubmit these requests to you for consideration and action.”

Listed below are the details of one of Ms. Deutch’s suggestions. To read the full text of Ms. Deutch’s suggestions for IRS improvement, please download the PDF attached to this release.

Inadequate Review of Effective Tax Administration (ETA) Offers

There are not enough sufficiently trained employees at the IRS to review and accept ETA OICs. When an ETA OIC is filed the taxpayer states that “I owe this amount and have sufficient assets to pay the full amount, but due to my exceptional circumstances, requiring full payment would cause an economic hardship or would be unfair and inequitable.”

With an ETA OIC the taxpayer does not offer any asset that he is dependent upon or that would cause him a financial hardship if liquidated. In this situation, the taxpayer is claiming and trying to prove two things: The taxpayer has enough or sufficient equity in assets to full pay the back taxes; and, if the taxpayer were required to liquidate the assets it would cause a financial hardship or it would be unfair to make the taxpayer liquidate the asset(s). Often ETA OICs are filed and they are immediately rejected with a determination that the taxpayer has sufficient equity to full pay their taxes. There is no review into the facts and circumstances of the taxpayer’s particular situation and the OIC is rejected forcing the taxpayer to file an appeal and to go through the appeals process. A better review process for ETA OICs is needed.

Millions of people recognize tax attorney Roni Deutch as The Tax Lady®. She has been helping taxpayers nationwide resolve their tax liabilities for seventeen years. As an industry leader, she has saved her clients tens of millions of dollars and has helped thousands of families settle their back taxes.