JK Harris CEO Explains Offers in Compromise on Bloomberg Television®

John Harris, president and chief executive officer of JK Harris & Company, explained the Internal Revenue Services Offer in Compromise on Bloomberg Television's Personal Finance" program.

NEW YORK, NY (PRWEB) October 9, 2004 -- In a recent appearance on Bloomberg Televisions Personal Finance" program, John Harris, president and chief executive office of JK Harris & Company, discussed the Internal Revenue Services Offer in Compromise program with host Lane Bajardi.

Harris discussed issues related to the Internal Revenue Service's efforts to collect delinquent taxes during the five-minute interview, which was broadcast on Bloomberg Television, the 24-hour global business and financial news network..

JK Harris & Company (www.jkharris.com) specializes in providing relief to delinquent tax payers through the Offer in Compromise program, which allows qualified individuals to pay past due taxes on a discounted rate.

The Internal Revenue Service designed this program to give individuals a fresh start and to get them back into the tax-paying system," Harris said. If accepted, it allows them to pay off the debt in installments over a period of time."

Harris, founder of the nations leading tax resolution and debt management company. noted that the Offer in Compromise program is complex, requiring significant paperwork and ongoing contact with the Internal Revenue Service over a period of time.

By the time people contact us the Internal Revenue Service has already notified them about the situation," he said. Many are facing a crisis which could include liens, wage garnishments, or foreclosures. Keep in mind that when it gets to this point, the Internal Revenue Service has been trying to resolve the situation for at least a year."

According to Harris, most of his clients are independent contractors who have neglected to file their 1099 forms.

There was a time when the Internal Revenue Service couldnt track wages if people didnt file W2s or 1099s," he told the national audience. But today, it has a program matching the employers W2s and 1099s to the employee, so its just a matter of time before the government discovers the delinquency."

To determine if an individual qualifies for an Offer in Compromise, the Internal Revenue Service uses a formula that involves calculating income, net equity, and assets.

If an individual has regular income and funds left over after living expenses and payments to other creditors, its unlikely they will qualify for an Offer," Harris said. If thats the case, we consider other options to satisfy the Internal Revenue Service liability."

In order for the Internal Revenue Service to consider an Offer in Compromise, JK Harris clients must be current with their state and federal tax returns. Additionally, they must submit detailed financial data so the Internal Revenue Service can make a determination on the file. Harris indicated that if the client cooperates the Offer process can be completed in as little as six months. But if the client cannot assemble accurate financial records, the process can take up to two years.

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