JK Harris and Company, LLC, CEO and President John K. Harris recently applauded National Taxpayer Advocate Nina Olson for her report to Congress concerning the IRS’ Offer in Compromise program.
[ClickPress, Fri Feb 18 2005] NORTH CHARLESTON, S.C. – JK Harris and Company, LLC, CEO and President John K. Harris today applauded National Taxpayer Advocate Nina Olson for her report to Congress concerning the IRS’ Offer in Compromise program.
JK Harris and Company is the nation’s largest and most successful tax resolution company and files OICs on behalf of thousands of clients every year. Harris said that he was appreciative of Olson’s report, which showed that the OIC program continues to be listed as one of the IRS’ “Most Serious Problems.”
“I praise Ms Olson,” Harris said, “for recognizing the failure of the IRS to seriously improve the program and I further thank her for delivering this report to Congress in an open, honest way.”
Harris points to three main concerns Ms. Olson mentioned in her 2004 report to Congress:
The IRS looks for reasons to return or reject OICs – According to the report, “IRS practices and policies continue to make it very difficult for taxpayers to enter into OICs…Unnecessary OIC returns and rejections are inconsistent with OIC program goals of providing taxpayers with a legitimate alternative method of resolving their tax liability…”
The IRS doesn’t consider the facts and circumstances of each client’s situation – The report noted that “Taxpayers and practitioners complain that IRS employees sometimes strictly adhere to the expense guidelines, notwithstanding facts and circumstances which indicate that they are not appropriate in a given case.”
Ultimately, by returning and rejecting OICs unnecessarily, the IRS collects less money than what the taxpayer offered and forgoes the opportunity to keep the taxpayer in compliance -- “To the contrary, IRS practices and policies continue to make it very difficult for taxpayers to enter into OICs. Moreover, a recent IRS study suggests that in a majority of cases when an OIC is rejected or returned to the taxpayer, the IRS eventually collects less than the amount that was offered…by returning and rejecting OICs, the IRS is missing opportunities to collect what can reasonably be collected at the earliest possible time and at the least cost to the government,” the report stated.
The IRS will accept an OIC when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential. The ultimate goal is a compromise which is in the best interest of the taxpayer and the IRS. Acceptance of an adequate offer will also result in creating, for the taxpayer, an expectation of a fresh start toward complying with all future filing and payment requirements. The OIC process is based on a debt-to-asset formula devised by the IRS.
“I commend you for making a difference for the American taxpayer, who may have had things in his or her life go in the wrong direction and beyond their control.” Harris said. “You are advocating for them and you are trying to make the best of the system. And for that, I say ‘Thank You’.”
JK Harris & Company, LLC (www.jkharris.com) is based in North Charleston, S.C. JK Harris & Company is the nation’s largest tax resolution company with over 470 satellite offices in 45 states and has serviced over 120,000 clients since its founding in 1997 by John K. Harris. JK Harris also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, mortgage services, tax return preparation, and assisting individuals who require support for an IRS audit.