Get Offer in Compromise help fee(s) starting at $100. Offer in Compromise Facts.
The hard truth about an OIC is just that; hard. The real picture is that most taxpayers do not qualify for this program. The IRS accepts between 15-25 percent of Offer in Compromise applications annually, and with nearly 10 million Americans having some type of tax debt with the IRS, that translates to a lot of rejections. The IRS has a mathematical formula to determine which taxpayers qualify for the Offer in Compromise. The formula considers many factors of a taxpayer’s situation, including:
- The IRS has determined that it is unlikely that a taxpayer’s tax debt will be satisfied before the Statute of Limitations expires.
- A taxpayer can provide documented proof that the assessed tax debt is incorrect or unjust.
- A taxpayer can prove that settling their tax debt in full, either with a lump sum or monthly payment plan, would cause them financial hardship.
The OIC program allows you to offer a lesser amount for payment of a non-disputed final tax liability. If you are an individual or business taxpayer that does not have the income, assets, or means to pay your tax liability now or in the foreseeable future, you may be a candidate. Although they evaluate each case based on its own unique set of facts and circumstances, they give the following factors strong consideration:
- The taxpayer’s ability to pay
- The amount of equity in the taxpayer’s assets
- The taxpayer’s present and future income
- The taxpayer’s present and future expenses
- The potential for changed circumstances
Generally, the IRS approves an Offer in Compromise when the amount offered represents the most they can expect to collect within a reasonable period of time.
To submit an OIC a taxpayer should file appropriate form(s) and include 20 percent of their settlement offer with the application. This nonrefundable payment will be put towards the tax debt if the application is denied. Call today (508) 528-4690 or email email@example.com for a tax debt consultation ($100 fee) appointment before you apply for an OIC to ensure you qualify!
The IRS will only process the OIC application if you have done all of the following:
- Offers require a $150 application fee unless you meet the low Income certification guidelines
- You have filed all of the required tax returns. If you have no filing requirement, note it on the application.
- You have fully completed the Offer in Compromise application, and provided all supporting documentation.
- You agreed with the IRS on the amount of tax that you owe.
- You authorized the IRS to obtain your consumer credit report and to investigate and verify the information you provided on the application.
However, if delaying collection activity jeopardizes the IRS’s ability to collect the tax, they may continue with collection efforts. Interest will continue to accrue. Collection activity is not automatically suspended. The Offer in Compromise program allows you to offer a lesser amount for payment of a non-disputed final tax liability. If you are an individual or business taxpayer that does not have the income, assets, or means to pay your tax liability now or in the foreseeable future, you may be a candidate.
Call today (508) 528-4690 or email firstname.lastname@example.org if you want to sleep better at night, become compliant and get the IRS off your back!