An offer in compromise (OIC) is a great program that is offered by the IRS and some States to help financially troubled taxpayers get back into compliance with taxing authorities. If an OIC is approved, it will allow you or a business to settle taxes owed for less. The IRS and States do not easily accept OICs, as only a fraction of taxpayers that apply actually have their offers accepted. In fact, in 2013, about 41.8% of OICs were accepted by the IRS. In order to apply for an offer in compromise, a full financial disclosure of assets, liabilities, income, and expenses with the IRS or State needs to happen. The preparation and documentation on this type of tax settlement is laborious. Furthermore, it can take up to 6 months for the taxing authorities to respond. Fortunately, the taxing authorities generally will stop collection actions on the taxpayer once the request is made as long as they don’t believe the request was made as a stalling technique.
How Our Offer in Compromise Service Works
Our tax professionals may recommend you pursue an Offer in Compromise after they analyze your financial situation and tax transcripts. Beware of other firms making promises that they can settle using this form of settlement before knowing all the details about your finances and tax situation. We will never suggest this type of filing until we have analyzed your financial situation in great detail and matched it up with IRS standards to determine the likelihood your OIC being accepted. To determine your qualification for this program, our tax team will work closely with you to gather detailed financial data to match up to IRS guidelines (or state taxation authorities if they offer this type of settlement) to determine the likelihood of qualifying for an OIC. If we determine that you are likely able to qualify we can determine what offer amount would most likely be accepted by the IRS and determine if you can afford that payment. Once we cross reference all the data, we will file all the appropriate paperwork and make the request (which will stop the collection process) and then we wait for the response from the IRS or State which can be several months.
Why Select Us for an Offer In Compromise
Our team of tax professionals will never make false promises about your qualification for this program. Our tax professionals are very knowledgeable about the process of the OIC and use various computer models to help determine qualifications and offer amounts to increase your success. If we find out you do not qualify for this program, we will help find the next best thing that fits your financial needs.