IRS Offer in Compromise

If you qualify, an Offer in Compromise ("OIC") can be the ideal solution for resolving your delinquent tax liability. In recent published IRS statistics, the IRS reports that the average discount on accepted OIC was 88% (only 12 cents on the dollar was paid by tax payers with accepted OIC). Also, the average acceptance rate for an OIC was 47.6%. Given the tremendous savings possibilities on accepted OIC, our office works very diligently to see if you qualify for an OIC. Contact ustoday to see if you qualify.

How it Works

The OIC is still a relatively new IRS program started in 1992 by Section 7122 of the Tax Code. There are two main basis under which an OIC can be successfully negotiated with the IRS. They are one, "Doubt as to Collectibility" (the taxpayer is unable to pay the full tax debt). Second, "Doubt as to Liability" (e.g. the taxpayer contends that they do not owe the debt). A  recent third ground for acceptance is "Effective Tax Administration" (the IRS wants to get as much as they can, and they may believe that .12 cents on the dollar is the best they can achieve). For an OIC to be accepted, however, the taxpayer has the burden of proof that they either have no possible means of paying the tax or that they do not actually owe the tax.

The main determination on "Doubt as to Collectibility" is a taxpayer's personal financial profile; including assets, income, and expenses. The IRS sets strict guidelines for income, allowable expenses (such as: Living, Housing, Transportation, etc.) and available equity in assets owned by the taxpayer.

An additional benefit of submitting an OIC is that the IRS is stopped from collecting a tax debt by levy during the period in which an OIC is being processed, thirty days following rejection of an OIC, or during the Appeal of an OIC rejection. This time frame of non-collection is often a great delay for our clients to avoid IRS collection actions. This often time allows our clients an opportunity to seek alternative options if necessary.

ACCEPTANCE of OIC

Payment terms for an OIC can be either by: Cash ( 20% with submission of offer and 80% within 90 days of acceptance), OR Short-Term Deferred Payment (24 monthly payments beginning with submission of offer).

Tax attorney Sherri Carver has the knowledge and the experience necessary to assist you with an IRS Offer in Compromise. Dealing with tax problems can be one of the most stressful times of anyone's life; Don't handle it alone! You need a tax attorney who understands tax law and how to help you end your tax problems.

Contact Our Office today for a free consultation regarding your tax problems!