Wondering if there’s a way to reduce the amount of back taxes, penalties, and interest you owe the IRS? There is! An IRS Offer in Compromise (OIC) is a taxpayer program designed specifically to help those who are struggling with rising tax debt.
What is an Offer in Compromise (OIC)?
An OIC is an agreement between you and the IRS that settles your tax liabilities (including back taxes and any penalties or interest) for less than the full amount owed. You must offer an amount that’s equal to what the IRS can collect from your disposable monthly income and equity in assets (also known as reasonable collection potential).
The IRS has a 10-year window to collect the taxes you owe, and if it’s clear you won’t be able to pay in that time period, they’ll consider an OIC. If you’re able to pay through an installment or other means, you won’t be entitled to this form of tax debt relief.
How to Qualify for Tax Debt Relief with an Office in Compromise from the IRS
If you’re looking for IRS tax relief, it’s best to have legal representation. Experienced tax attorneys can help you with an IRS Offer in Compromise meet the following requirements:
• Determine if you’re eligible by completing a Form 433A or B if you’re a business owner
• Allow IRS to keep tax refunds, payments, and credits applied to past tax debts before submitting the OIC
• Pay the offer amount in the OIC
• File tax returns on time and pay back taxes on time for the next five years
• Let the IRS keep any tax refunds that would have been payable during the calendar year that the OIC is approved
It can be difficult to navigate tax debt relief. Let Tomes help.
Many taxpayers end up offering too much to the IRS. Before you consider applying for an offer in compromise, have a consultation with a Tomes tax resolution specialist. We can analyze your situation and help you offer the lowest acceptable amount. Contact us today!