IRS Offer in Compromise

You may be eligible to settle your tax debt for less than you owe. An IRS Offer in Compromise (IRS OIC) is a program offered by the Internal Revenue Service that permits the government to accept less than what is owed on a tax liability.

You should be fairly certain that you are in fact a good candidate for the program before you submit an IRS Offer in Compromise to the IRS. The Internal Revenue Service will either approve or reject your IRS OIC based on two factors:

• Income of the taxpayer
• Assets of the taxpayer

If the IRS determines that the client’s income or assets is not sufficient to cover the tax liability, the IRS Offer in Compromise has good chance of acceptance. However, when a taxpayer possesses assets that would sufficiently cover the tax liability, the IRS will reject the IRS Offer in Compromise. The basic premise for the IRS to approve an offer is that acceptance of the offer will be in the IRS’s best interest, not necessarily in the best interest of the taxpayer.

What You Should Know About an IRS Compromise

Many firms promote the IRS Offer in Compromise program to unqualified taxpayers. It is important to realize that both the approval process and the factors associated with the calculation of tax debt by the IRS are complicated and time consuming. In addition, if the IRS Offer in Compromise is submitted, and does not have grounds for being accepted, the taxpayer will incur additional interest and penalties that continue to accrue. Even worse for the taxpayer, the time period for the IRS to collect the debt can be extended, and the option to discharge the taxes in bankruptcy can be delayed.

Our firm is constantly contacted by new clients who were incorrectly advised by unqualified professionals about an IRS Offer in Compromise. Most commonly, these “firms” charged exorbitant fees to taxpayers who were otherwise unqualified IRS OIC applicants, and caused irreparable damage to the severity of the taxpayers pending situation.  During the initial consultation, our professionals will assess your qualifications for an IRS Compromise. Please call 1.800.777.3800 or contact TaxFirm.com to schedule your initial consultation about an IRS OIC.