Offer in Compromise

[HV Ken]

We have a client who owes around $10,000 from previous years. He has lost his job and lost his home. He is self-employed and lost some of his contracts. His situation appears to be well suited for an Offer in Compromise.

What suggestions do you have for pricing this engagement, obtaining a retainer, etc. ?

We are familiar with the process, but we have never actually submitted one yet.

Thanks for any advice/assistance.

[mlinder42]

We have a client who owes around $10,000 from previous years. He has lost his job and lost his home. He is self-employed and lost some of his contracts. His situation appears to be well suited for an Offer in Compromise.

What suggestions do you have for pricing this engagement, obtaining a retainer, etc. ?

We are familiar with the process, but we have never actually submitted one yet.

Thanks for any advice/assistance.

If things are as bad as you say and he would not be able to an installment agreement than you should be able to put him a non collectible status.The least I have ever done an OIC is $1500.The majors get $2500 to $5000 to do them.He does not owe enough.

[jainen]

>>pricing this engagement<<

Since an Offer in Compromise usually takes 20 to 35 billable hours, the fee the client WOULD pay probably equals or exceeds the amount he MIGHT save. And since the client has no assets at risk of seizure and in the worst case still automatically qualifies for low monthly payments, in what way is he "well suited" for an OIC?

Most likely his OIC would end up looking a lot like a five-year payment plan anyway--you know they don't just accept whatever you turn in. It's not much work to get up to a one-year stay on collections, he just has to call in every two or three months. And then when business picks up he can start to pay what he owes. Or if business continues to fail, the past years will time out and qualify for bankruptcy. Unless he filed for an OIC along the way, which suspends the time limits and drops him back to square one when he defaults.