Offer in Compromise
Paying off the IRS can seem impossible when it feels like you are trapped under suffocating back taxes. Fortunately, the IRS offers various forms of debt forgiveness to pay off your tax liability such as a Payment Plan and an Offer in Compromise (OIC). An OIC can allow you to wipe your tax slate clean with a significant reduction to your balance and our Los Angeles tax attorneys at GetATaxLawyer.com can negotiate with the IRS to help you become free of back taxes.
What Does IRS Offer in Compromise Mean?
According to the IRS, an offer in compromise is a settlement to pay off your tax balance for less than the amount you owe.1 An OIC is generally approved when the settlement that is offered is rounded up to what the IRS can expect to collect within a sensible timeframe. The IRS considers several factors to determine your eligibility for an OIC:
- Ability to pay
- Asset equity
How Do You Qualify for An Offer in Compromise?
Even though an offer in compromise program is made available through the IRS, that does not mean everyone is qualified. For instance, in 2017, the IRS approval rate for an OIC was 40.3% after approving 25,000 out of 62,000 taxpayers who applied.1 The IRS has put into place strict qualifications for an offer in compromise and they are as follows:
- Doubt as to Liability – There’s a genuine dispute about the current amount owed.
- Doubt as to Collectability – The total of your assets and income combined is less than the overall tax debt.
- Effective Tax Administration – Debtor acknowledges liability or collectability but states paying off the full amount would create financial hardship or that it would be inequitably unfair to pay off the total balance.
Contact Our Tax Attorneys to Help You Win!
Qualifying for an offer in compromise with the IRS on your own can be draining, but when you hire our tax attorneys, you can expect to smooth communication and professionalism. Trust our team of tax attorneys with decades of combined experience and knowledge to help determine your eligibility for an OIC. Start your journey toward a clean slate by contacting us at 1-800-290-8160 today!