IRS Offer in Compromise

Taxpayers who have chosen not to pay their taxes for some reason or the other, need to fear the fact that the IRS wont let go of them so easily. They will incur huge debts and that too at a high rate of interest. They will need to pay back the amount in good time, make no mistake about that! However, as can be imagined, the debts are allowed to pile on and tax delinquents have a hard time of it, paying back their accrued debts.

What’s the option you might ask? Well the IRS offers a host of options that enables one to pay back their debt like full payment, installment agreement. If these don’t work then you must go for IRS offer in compromise. It’s almost like a last resort, which a tax debtor must resort to, only after her or she has explored all other options for the same.

You must remember that, less than one percent of all debts are resolved by the IRS through the offer in compromise with the IRS.

What is an IRS Compromise Offer?

An Offer in Compromise (OIC) is an agreement between the tax payer and the IRS, which enables the resolution of the taxpayer’s tax debt problems. The IRS has the sole authority to settle for a ‘compromise’ on the federal tax liabilities. What this essentially means is that the IRS can accept less than the full payment due to them, under certain circumstances.

The Parameters of the IRS Compromise Offer

The IRS can legally compromise tax debts for one or more of the following reasons:

• Sufficient doubt exists that the tax assessment is incorrect; that is doubt as to liability.
• Sufficient doubt exists that the tax payer will ever be able to pay the full amount of tax that he or she owes to the IRS.
• An offer in compromise with the IRS can be brought about if there is an exceptional circumstance that has made it difficult for the taxpayer to pay the amount owed, at that particular amount of time. For a taxpayer to come good on this parameter; he or she must demonstrate through documents or any other means that the collection of tax debt would lead to an economic hardship or the process itself is inequitable or unfair.

Not ‘Pennies on the Dollar’

At Tax Relief Point we would do not claim to initiate a tax offer in compromise that is so affordable that a debtor would feel that he or she is paying mere pennies for the dollars owed. We offer our client the benefit of honesty in terms of what they can expect to pay when it comes to the tax offer in compromise.

What we can help you with is negotiation with the IRS for a great deal on the tax debt and also make known to you the various parameters for qualification and preparing documentation for the same. We have proven expertise in the field of IRS offer in compromise and make available to our clients our wealth of experience and knowledge, which go a long way in making sure that their IRS compromise offer is given a look into.