An Offer in Compromise (OIC)
An Offer in Compromise (OIC) is an agreement between the taxpayer and the IRS that settles a tax debt for less than the full amount owed. The offer program provides eligible taxpayers with a path toward paying off their tax debt.
If the IRS accepts the taxpayer’s offer, the taxpayer will have agreed to fully comply with the tax laws. The IRS will keep any refund, including interest, that might be due for tax returns filed through the date the IRS accepts the offer.
The ultimate goal is a compromise that suits the best interest of both the taxpayer and the IRS. Generally, you must make an appropriate offer based on what the IRS considers your true ability to pay.
Submitting an application begins a process of evaluation and verification by the IRS, taking into consideration any special circumstances that may affect your ability to pay.
The IRS may accept an OIC based for the following reasons:
1- The IRS can accept a compromise if there is doubt as to liability. A compromise meets this criterion only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.
2- the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3- The IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
PROSPER TAX RESOLUTION SERVICES SOLUTIONS FAQs
Owing the IRS can be scary and stressful. But we are experts in resolving your debt, quickly and efficiently. There are many options we can consider in order to reduce or in some cases even eliminate your existing tax obligation. Installment Agreements, Offer in Compromise (OIC), Penalty Abatement, are some of the many options. In order to determine the best strategy for your unique situation, please call us for a no-obligation, confidential consultation. We’ll help create a tailored action plan so that you can finally put the stress and anxiety of owing the IRS behind you.
If you are unable to pay a tax liability in full, if you believe there were extenuating circumstances that caused you to fall behind on your payment, or if you feel that the liability is incorrect, we encourage you to consult with one of our specialists. We’ll help you understand your options and create the best plan for you and your family. A tax pro has the experience and resources to negotiate with the IRS and resolve your debt quickly and efficiently. Hiring a tax resolution specialist means you’re not facing the IRS alone—you’ve got our expert fighting for you.
There are many programs we can consider for reducing or sometimes even eliminating your existing tax debt. The options can range from Installment Agreements to Offer in Compromise (OIC), Penalty Abatement, Currently Not Collectible Status and more. In order to determine the best strategy for your unique situation, please email us for setting up a no-obligation, confidential consultation.
Returns are randomly selected or chosen based on statistical formulas where the IRS compares your return against “norms” for similar returns. Returns are also selected when they involve transactions with other taxpayers whose returns were also selected for audit (e.g., business partners, investors). Selecting a return for examination does not automatically suggest that the taxpayer has made an error or been dishonest. Sometimes, audits result in a refund or acceptance of the return with no change. If you have questions about an IRS Audit Letter, please feel free to contact us.
Depending on the situation, it’s a possibility. If you’re struggling with tax debt, please contact us today so we can elaborate further and look into the details of your case to create a plan that mitigates the risk of unpleasant surprises from the IRS.
Seriously delinquent tax debts are legally enforceable, unpaid federal tax debt (including assessed penalties and interest) totaling more than $59,000 (adjusted yearly for inflation). These debts include U.S. individual income taxes, Trust Fund Recovery Penalties, business taxes for which taxpayers are personally liable for and other civil penalties.
The IRS must have filed a Notice of Federal Tax Lien, and all administrative remedies under the law have lapsed, or have been exhausted or issued a levy in their efforts to collect these debts.
We can help with a wide range of tax matters such as:
- Income Tax Debt Relief
- Tax Liens
- Tax Levies
- Offer in Compromise (OIC)
- Installment Agreements
- Penalty
- Abatement
- Wage
- Garnishment
- Revocation or Denial of Passport/ID in Certain Cases
- IRS audits
- Bankruptcy & More
If you are unable to pay a tax liability in full or receiving threatening letters from the IRS and need help filing back taxes or need to dispute something with the IRS, we can assist you to fix the issue or resolve the debt. Just give us a call! We’re here to help.
The statute of limitations is generally three years after a return is due or had been filed, whichever is later. However, if the IRS identifies a substantial error, they can request to extend the statute of limitations.
Every case is different. There are many programs we can use to lower or even eliminate your tax responsibility such as Installment Agreements, Offer in Compromise (OIC), Penalty Abatement, Currently Not Collectible Status and more. In order to determine the best strategy for your unique situation, please email us for a no-obligation, confidential consultation.
If you receive a letter from the IRS, please consult with one of our tax professionals immediately. We can talk about your case and prepare a plan to mitigate the risk of any unpleasant surprises.
Once we begin working together, our first order of business is to make sure that all future IRS communication be routed through our office. We will keep you informed, but you will no longer be burdened with IRS calls, letters, or collection activities. You can rest easy knowing that you have our expert on your side.
Absolutely! It might take the IRS several years, but eventually they will come knocking, and when they do, they will be very persistent. It’s always best to take the first action and make it ultra easy to file back tax returns. We’ll ask you to provide income and expense information and we will also contact the IRS on your behalf to order any income documentation they have on the record for the years you did not file. We’ll prepare the missing tax returns, review them together, and file them on your behalf.
We guarantee that your case will be handled with the highest level of care and diligence from start to finish. We will take immediate action to negotiate with the IRS on your behalf and lay out a clear plan of action for resolving your tax debt once and for all.
Absolutely! We handle every case with the highest discretion, maintaining the highest level of confidence concerning our clients’ affairs.
No two cases are exactly the same. The cost will depend upon factors such as the size of the tax bill and the ideal settlement for your personal circumstances. We’ll work together to tailor a plan for you that doesn’t add unnecessary financial burdens to you and your family. If you’re struggling to pay the IRS, please reach out so we can help resolve your debt quickly and efficiently.