Are you struggling to pay off your tax debt? If so, you may be wondering if an Offer in Compromise (OIC) can help reduce the total amount of tax you owe. In short, an OIC allows you to settle your tax debt for less than the full amount owed. However, the process can be complex and there are certain factors that can increase your chances of success. In this blog post, we'll discuss some tips on how to maximize your chances of reducing the total amount of tax you owe with an OIC.
1. Understand the Eligibility Criteria
Not everyone is eligible for an OIC. The IRS considers factors such as your income, expenses, assets, and ability to pay when determining eligibility. Before you apply for an OIC, make sure you meet the eligibility criteria. You can use the IRS's Offer in Compromise Pre-Qualifier tool to determine your eligibility.
2. Hire an Experienced Tax Attorney
Navigating the OIC process can be daunting. Hiring an experienced tax attorney who specializes in OICs can increase your chances of success. A tax attorney can help you determine your eligibility, negotiate with the IRS, and ensure that all necessary documentation is submitted accurately and on time.
3. Provide Accurate and Complete Information
To maximize your chances of success, it's essential to provide accurate and complete financial information to the IRS. This includes information about your income, expenses, assets, and liabilities. Any discrepancies or omissions can result in the rejection of your OIC application.
4. Be Willing to Compromise
When negotiating with the IRS, it's important to be willing to compromise. The IRS may reject your initial offer and counter with a higher amount. It's important to be open to negotiation and willing to make adjustments to your offer.
5. Keep Up with Tax Payments
If your OIC is accepted, it's essential to keep up with any remaining tax payments. Failure to do so can result in the OIC being nullified and your original tax debt being reinstated. Make sure to stay on top of your payment plan and communicate with the IRS if you encounter any issues.
Contact Our Oklahoma City Tax Debt Lawyers
An OIC can be a viable option for reducing the total amount of tax you owe. However, the process can be complex and there are certain factors to consider to maximize your chances of success. By understanding the eligibility criteria, hiring an experienced tax attorney, providing accurate information, being willing to compromise, and keeping up with tax payments, you can increase your chances of successfully reducing your tax debt with an OIC.
If you need assistance with an OIC, contact The Carver Law Office, PLLC. Our experienced tax attorneys can help guide you through the process and increase your chances of success.
Call (405) 256-2619 or fill out an online form to get in touch with our Oklahoma City tax relief lawyers as soon as possible.