OFFER IN COMPROMISE
If you owe the Internal Revenue Service (IRS) more money than you have the ability to pay, you may qualify for a debt reduction solution known as an offer in compromise (OIC). This means the IRS allows you to repay less than what you actually owe.
WANT TO SETTLE YOUR DEBT FOR LESS?
When the assets and income of a taxpayer are not enough to pay off a tax debt in full, the IRS has the authority to settle for less than the full amount owed. This is called an Offer in Compromise. Most Offer in Compromise’s are rejected because they are reviewed for proper format, yet are not processed due to being formatted wrong. Offers that make it past this point at the IRS must choose the proper type of Offer.
IRS OFFER IN COMPROMISE
YOU OWE THE IRS BACK TAXES, INTEREST AND PENALTIES AND CAN’T POSSIBLY PAY IT?
You can think about making an offer to the IRS to settle your back tax bill for a single payment you could afford, even if that amount is much lower than your total IRS debt – if you can make a well-supported case that:
-  You don’t really owe the tax in the first place; or,
- There is little chance that you could pay the total tax bill (after you pay reasonable living expenses); or,
- If the IRS DID collect the total tax bill from you, it would be an economic hardship for you or would be unfair under your circumstances.
The IRS Offer in Compromise program exists because there are valid circumstances where it is in the interest of the US Government and the taxpayer to compromise. However, the IRS is very careful about accepting these offers and they require reasonable and documented proof. Attempting an Offer in Compromise on your own requires confidence that you can understand the economic parameters the IRS uses to measure how good your case will be, and that you can develop and present the evidence that will prove your case. If you don’t have this confidence, it will be better to let Tax Defense Partners step into your shoes – because if you actually qualify and you don’t do this right, you could end up being in the 75% of offers that the IRS rejects and then you will certainly end up paying more than you needed to.
If you DO want to explore engaging Tax Defense Partners to help you with an Offer in Compromise, they will explain the process and what you can expect before you start.
Income tax trouble does not solve itself. With interest
and penalties it only gets worse – much worse.
If you call us, we will explain to you the nature of your tax problem and the strategies you can use to resolve it permanently so it no longer threatens your economic life.
You may decide to ask us to resolve your problem for you; to deal with the IRS so you don’t have to – but that will be your decision to make after you clearly understand what we will do to help you, how we will do it and how much it will cost.
Whether or not you hire us, we will still give you a free consultation to frame your tax problem and suggest methods for resolving it permanently. Any and all conversations we have with you are confidential, whether or not we end up working together.
