How to Qualify for an Offer in Compromise

Posted By Brian Loughrin || 30-May-2013

When an individual owes the IRS money for taxes there are numerous options he or she can take advantage of to pay off the debt. If you are unable to pay your taxes in full, the primary options recommended by the IRS are making a request for additional time in which to pay off the taxes you owe, applying for an installment agreement so as to be able to make smaller payments over an extended period of time, using a credit card, or obtaining a personal loan from a family member or friend. One other program which was created in 1992 by Section 7122 of the Tax Code is the Offers in Compromise (OIC) program. This particular program may be the most ideal program for any person who is unable to pay his or her past due tax debt or who would be left with an extreme financial hardship if the debt was paid in full.

When applying for an OIC it is your responsibility to show clear evidence that you have no possible means with which to pay your taxes, or that you do not owe the taxes assessed. You will also be required to submit evidence as to your current income, expenses and asset equity. All of this information will then be used by the IRS to determine whether you qualify for the OIC program. If the IRS determines you qualify for an OIC, they will generally approve any offer deemed to be the most they can expect to receive within a specified time frame. In certain circumstances an OIC may be accepted based on "Effective Tax Administration". If that is the case you can expect to pay your debt at about 12 cents on the dollar, to be paid in either one lump sum or through deferred payments.

One additional benefit to the OIC program is that any person who applies for an OIC cannot be subjected to tax liens or levies during the time his or her offer is being processed, within 30 days following a rejected offer, or during the time in which a rejected OIC is being appealed. It is for that reason we recommend you contact our firm so we can devise an effective strategy to help you put an end to your tax problems. Our firm has extensive knowledge of current tax law, and we know how the IRS functions administratively. We have spent the last 13 years helping Tampa residents resolve their tax-related issues and our goal is to provide clients with the effective representation they need to obtain the most optimum results in their IRS tax case.

Tax problems do not go away. If you or a loved one needs help with any kind of tax-related issues, or you would like to find out if you qualify for the Offer in Compromise program, contact Tampa IRS tax relief attorneyBrian Loughrin at our firm today.

Categories: Tax Relief