Settle IRS Debt With Offer in Compromise (OIC)

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What is an IRS Offer In Compromise?

An agreement between the taxpayer and IRS to pay less than the full amount owed is known as an offer in compromise (or OIC).

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.

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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 Clean Slate Tax 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.

An OIC can be paid off in 5 months but if you don’t, then you may be in for an unpleasant surprise.  Someone has filed a lawsuit against the IRS after the agency failed to release them from their high-interest debt, but this is uncommon. You can stop the IRS from seizing any assets while your debt is listed as pending until you can get your offer. This is known as an offer in compromise (or OIC). In this situation, you may get a return of your offer without appeal rights. If you pay in full for tax periods extending through the calendar year in which the officer from the IRS is willing to accept compromises, then you may find messages concerning this offer on your voice mail or answering machine.

Offer in Compromise (or OIC)

The ultimate goal is a compromise that suits the IRS and you. An offer in compromise has to be filed by you. You will need to prove to the IRS that you have payments made by your employer by data, so the forgiveness through an offer in compromise can be considered. By filling an offer in compromise, you will pay the balance in monthly installments, of course, while the IRS considers your case. Some payments will be excluded from this, so it helps to look into what to expect after the IRS receives your compromise from the state.

Either way, you will have to make payments while your offer is being considered before an offer in compromise is made. It is likely that your case will be resubmitted so the assets before the case can be taken into account. This means following some rules as the collections until the compromise is made may continue. While your offer is being considered, you need to keep with a mindset that is positive. Sitting down with a financial road map can help if you want to order before an offer in compromise.

Assets Before the Compromise

Assets should be listed before the compromise as the IRS may need to evaluate whether the offer in compromise is the best option. You may need to write-off assets received by yourself to pay the debt that is then collected by the IRS. This needs to be completed before the deadline. This will be pending until the date specified. By providing the right data, an offer in compromise can be reduced to an offer of a little over 40% of the original debt. By having your debt settled through an offer in compromise, you can then still make payments while the IRS is considering the offer.

Evaluating whether an offer in compromise is right for you, or whether an offer in compromise qualifies you to relieve debt can be difficult. As a victim, you might hope that your decision is automatically accepted but only if the IRS does not make a fast decision. You may also be wondering if an offer in compromise by the criminal investigation division is going to help you or harm you in the future.

Questions about your Offer in Compromise

All of these questions about your offer in compromise are valid, and although you may need guiding on lake Yellowstone, or need support while the offer is pending, you have to remember that rolling on an offer in compromise is usually going to help you with your debt from commercial work. You have to talk with the IRS office before sending or submitting on offer in compromise because the debt through the IRS offer in compromise may add a multiplier on the excess. This may be required after an offer in compromise has been submitted. If you are under doubt then talk with someone who is licensed before the tax court. They can tell you what needs to be resolved before sending, mandatory before sending and if you should settle or compromise. An advisor can talk to you at the beginning in the month after the offer is submitted and they can compromise from certain taxpayers as well, before the IRS’ collection statute.

Begin the Process

Your debt will need to be paid within 24 months from the date IRS received your documents. The IRS is willing to work with anyone who wants to begin the compromise process. If you want to know what’s going to happen to your payment after the offer has been received by the IRS or collected by the IRS then you need to take note of the status, whether it is “pending until the” “completed before the” or “is accepted”. Under effective tax administration rules, it’s safe to say that there are solutions from working out how to pay your tax, whether you need to raise from asset, take action while an offer in compromise or have one tax debt included on your qualify for an offer in compromise.

Innocent Spouses

If you are stuck, then read an article on the new innocent spouse rules which could be necessitated by an offer in compromise. If you have a spouse this will be reflected by the offer in compromise. Your property while a valid offer in compromise may be an asset as well. It may be possible for you to hold while the compromise is taking place. If you have questions such as “if I settle with the IRS on tax debt that has been filed while the offer in compromise is pending, then it helps to talk with a tax professional. They can help you to explore avenues which are different while the offer in compromise is in place. You want to look up compromise on its merits as well, along with “what happens if the IRS rejects your offer. If your offer is rejected by the decision about an offer in compromise, then you need to speak with the office about the offer in compromise.

The reason why this may be mentioned by the offer in compromise if you have paid by the offer in compromise in the past. You may be eligible for compromise on this basis, a taxpayer, who is in business. This can only be done if you or your business is currently in operation. You will need to get your documents completed before the offer in compromise is considered and the acceptance of the offer gets put forward.