Michael Sullivan Fresh Start Tax Expert

If you want to know the truth about the offer in compromise program, I am the person you need to speak to. Since 1982.



I was commissioned by Internal Revenue Service to not only work the offer in compromise, settle IRS tax debt but also to train those qualified to work the program of debt settlement.

I am not only local but a national tax expert in the offer in compromise program. I have been on FOXBusiness news NBC, and have commented on Bloomberg and the Wall Street journal on various IRS issues.


I am a former IRS agent and teaching instructor with my former boss of the offer in compromise program.

I know the system inside and out I worked it I’ve trained others and have accepted offers in compromise for the federal government.


I am a true IRS tax expert, national speaker, and have been on FOXBusiness news and other outlets speaking about different matters about Internal Revenue Service.


There are many myths about the offer in compromise program.


There are strict standards that the IRS employee before they accept an offer in compromise. I know because I’ve both accepted offers in compromise taught new employees to accept the offer in compromise or reject them and I know the system inside and out.


I suggest that every client or taxpayer before they file an offer in compromise either do one of two things.You would be foolish not to do these.


Number one, call a true tax expert who knows the offer in compromise inside out or number two, to fill out the IRS pre-qualifier tool for the offer in compromise.

If you’re calling a professional firm you want to make sure the representative has at least filed 100 offers. It takes a lot of experience and knowledge to get an offer in compromise through. some are very simple and don’t need a lot of experience while others demand. expertise skill level.

The Internal Revenue Service spends several hours, much more than you think to accept an offer in compromise. As a general rule, the average agent can spend between 20 to 40 hours to accept an offer in compromise.

After that takes place, the revenue officer must convince their local supervisor, the area manager, and the General Counsel of Internal Revenue Service to accept the offer.

It literally goes back and forth in the system. Some exceptions do exist. Dollar amount has a lot to do in the direction your offer will take.

Why? because all offers and compromise are a matter of public record.

That public record is available at eight regional IRS offices in the United States. Even though offers are open to public inspection only one person last year looked through the IRS offers in compromise files. IRS is not made electronic copies for review.

There is a base rule for Internal Revenue Service accepting an offer in compromise.

You must give IRS the total equity in all your assets before IRS will consider or contemplate the acceptance.

Some exceptions exist, assets consist of houses, pension plans, stock, business valuations,IRS wants to make sure you’re actually borrowing the money to settle.

If you are interested in filing an offer in compromise you can call us today for a free initial tax consultation and I will walk you through the process of the true IRS debt settlement called the offer in compromise.


FACTS about the OIC:


IRS last year accepted approximately 30,000 offers in compromise in approximately 75,000 were accepted. The average settlement was $9500.

Don’t let this average settlement fool you, it’s based on an average of all the offers accepted.

Offers in compromise are excepted by formula not by judgment.

The basic formula a:re the total value of your assets times what you have left over a month on a current income and expense statement times the number of months left in the statute. Some exceptions do apply


Due diligence that can be used by IRS.

You want to make sure your financial statement is accurate.

IRS has a host of web-based tools that can search your assets, places were you work, your income, your real estate records, your car records, your business records, insurance records ,financial statement you’ve given institutions, credit reports and financial statements you’ve given the credit companies.

Make sure you are very honest in the submission of your offer in compromise

What is an offer in compromise


An offer in compromise allows you to settle your tax debt for less than the full amount you owe.

It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.

IRS consider your unique set of facts and circumstances:

• Ability to pay;
• Income;
• Expenses; and
• Asset equity.


IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.

The Offer in Compromise program is not for everyone.

If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.


Make sure you are eligible to file:

Before IRS can consider your offer, you must be current with all filing and payment requirements.

You are not eligible if you are in an open bankruptcy proceeding.

Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.


Submitting your offer in compromise:

You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:

• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;

• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;

• $186 application fee (non-refundable); and

• Initial payment (non-refundable) for each Form 656.


Select a payment option


Your initial payment will vary based on your offer and the payment option you choose:

• Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid in five or fewer payments.

• Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.


Understand the process

While your offer is being evaluated:

• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

If your offer is accepted

• You must meet all the Offer Terms listed in Section 8 of Form 656, including filing all required tax returns and making all payments;
• Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;
• Federal tax liens are not released until your offer terms are satisfied; and
• Certain offer information is available for public review by requesting a copy of a public inspection file.
If your offer is rejected
• You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711 (PDF).

Call us today for a free initial tax consultation and we will walk you through the system to get your offer in compromise accepted if you are a credible candidate for the program.

We only file offers in compromise if you are a suitable candidate.

Please keep in mind the average wait time for an acceptable offer in compromise is around nine months there are currently 7500 cases in the IRS Q right now.

Former IRS Agent + Inside Information About Offer In Compromise Program, Former IRS Teacher

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Mr. Michael D. Sullivan

Michael D. Sullivan is the founder of MD Sullivan Tax Group. He had a distinguished career with the Internal Revenue Service for 10 years. As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.

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