IRS Offer in Compromise

Tax Attorney Brian T. Loughrin successfully helps taxpayers stand up to the IRS.

Tampa IRS Offer in Compromise Lawyer

What is an Offer in Compromise?

Navigating tax debt resolution requires strategic expertise and a firm grasp of the Offer in Compromise (OIC) program. Established within the tax code, the OIC program offers individuals and entities facing tax challenges the prospect of reaching a viable settlement with the IRS. When seeking the most advantageous outcomes within this complex framework, collaborating with a skilled Tampa OIC attorney is not just beneficial – it's essential. At Brian T. Loughrin Tax Attorney, our attorney has more than 25 years of experience and a thorough understanding of the OIC process to craft tailored solutions that alleviate the burden of tax debt while positioning you for a more secure financial future.

What is an Offer in Compromise?

The Offers in Compromise (OIC) is an IRS program created in 1992 by Section 7122 of the Tax Code. If you qualify, an OIC is frequently the best solution for resolving your past due tax debt. The most recent published IRS statistics show that the average discount on accepted OICs was 88% - 12 cents on the dollar. Given the savings possibilities on accepted OICs, our Tampa IRS tax relief attorneys thoroughly reviews your case to see if you qualify for an OIC.

Considering an IRS Offer-in-Compromise? Contact an OIC attorney in Tampa at Brian T. Loughrin Tax Attorney online or dial (813) 517-8074 to request a free consultation.

What Are the Two Main Bases Which an OIC Can be Negotiated With the IRS?

There are two main bases under which an OIC can be successfully negotiated with the IRS. They are:

  • Doubt as to Collectability - such as the taxpayer is unable to pay the full tax debt.
  • Doubt as to Liability - the taxpayer claims that they do not owe the debt.

A recent third ground for acceptance is known as "Effective Tax Administration". In this situation the IRS wants to get as much as possible and they may believe that 12 cents on the dollar is as good as they can obtain from the taxpayer. For an OIC to be accepted, the burden of proof is with the taxpayer to show that they either have no possible means of paying the full tax or that they do not owe the tax.

How To Get An Offer In Compromise Approved

To ensure the acceptance of an IRS offer in Compromise, there are specific requirements that must be fulfilled. Firstly, all pending tax returns must be filed and you must be up-to-date with all estimated tax payments or withholding. If you are a business owner who has employees, all of your tax returns must be filed and you must be current with federal tax deposits.

It’s important to note that if you are an individual or business that is currently involved in an ongoing bankruptcy proceeding, then you are not eligible to submit an Offer-in-Compromise with the IRS.

When the IRS acknowledges your offer and you pay the mutually agreed-upon reduced amount, your tax debt will be resolved if you fulfill the stipulations that were outlined in the offer agreement.

When submitting an OIC, be sure to keep track of the date when the IRS received it. If the IRS does not reject, return, or withdraw your offer within 2 years upon receipt, then it is deemed as accepted by the IRS.

How Do I Pursue an Offer in Compromise?

The main determinant on "Doubt as to Collectability" is based on a taxpayer's personal financial profile (income, expenses, and assets). The IRS sets strict guidelines for income, allowable expenses (such as housing, living, and transportation expenses), and the available equity in personally owned assets.

An additional benefit of submitting an OIC is that IRS Restructuring Act prohibits the IRS from collecting a tax liability by liens & levies during the period in which the Offer is being processed, or 30 days following rejection of an offer, or during the appeal of an OIC. This time frame of non-collection is often a time for our clients to avoid IRS collection actions. This secures extra time for our clients to gather monies to pay and stops the IRS from seizing any assets while the OIC process winds its way thru the IRS maze.

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