End Your Tax Problems. Start with Free Consultation.

Offer In Compromise Las Vegas

Tax problems can be difficult to solve without the right professionals. And no one understands tax problems better than us.

Our team of tax attorneys is always ready to assist you, whether it’s for tax settlement, wage garnishment, IRS tax audit, or Offer In Compromise (OIC). So, if you’re planning to file an OIC application, read on to know more about it and why you should rely on us to get the job done.

What Is An Offer In Compromise?

The Offer In Compromise program under the Internal Revenue Code section allows a taxpayer to settle his tax liability with an amount less than what is owed.

This program is mostly availed by taxpayers facing economic hardship, and there are certain eligibility criteria set by the IRS (Internal Revenue Service) in this regard. Hence, not everyone is eligible for approval.

The IRS will generally accept an OIC request only under valid circumstances and depending on certain factors like the taxpayer’s income and ability to pay the taxes. This means that people who agree to an installment agreement or payment plan are also mostly considered ineligible to avail of this program.

Moreover, the IRS will assess if the amount being offered by the taxpayer is the maximum that the IRS can expect to collect within a given timeframe.

What Are The Eligibility Criteria For OIC Approval?

Overall, the IRS code states three qualifying criteria that will determine if your OIC request application will be accepted or not. These are:

1. Doubt As To Liability

If the taxpayer believes and has enough evidence to prove that the tax liability is incorrectly assessed, then he or she may dispute a part of the full amount owed with the help of our attorneys.

2. Doubt As To Collectibility

This is the most common reason for filing an OIC request, where the taxpayer believes and can prove that he or she will never be able to pay the amount owed. In other words, this scenario is considered valid when the taxpayer’s assets and income are less than the amount he or she owes.

Our services can help the taxpayer prove that there are economic hardships or other legitimate reasons behind the non-payment of taxes, and the IRS will then approve the application after verifying the taxpayers:

  • Circumstances and financial situation portrayed
  • Annual income and the subsequent ability to pay the tax
  • Overall expenses
  • Assets and the corresponding equity in them

3. Effective Tax Administration

The Effective Tax Administration (ETA) policy is valid for people who can pay the full amount of the legally owed tax due through their equity in the assets owned. However, the taxpayer must prove that liquifying those assets to pay off the tax balance will create financial stress or other problems under exceptional circumstances.

This policy is generally used by senior citizens or disabled taxpayers who survive on a fixed income that is generated through the assets that they own.

How To Apply For An OIC And What To Expect?

Depending on the applicable scenario, you are required to apply for an OIC through IRS Form 656-B, Offer In Compromise Booklet, or IRS Form 656-L with:

  • Form 433-A (for individual taxpayers) or 433-B (for business)
  • Form 656 for a corporation, LLC, partnership tax liabilities
  • A non-refundable initial payment for Form 656
  • List of the required documents
  • A non-refundable application fee

Once you have applied for an OIC, you are still required to pay back taxes. During this period, you can expect:

  • Non-refundable payments being applied to your tax liabilities
  • Temporary suspension of the IRS collection actions and seizure of assets
  • Extension of the legal assessment and collection period of tax filings
  • Your case being documented as a public record through a Notice of Federal Tax Lien

If the IRS doesn’t reach a resolution within 2 years from the date of receiving your application, the offer will be automatically accepted. Likewise, if your application is accepted during that period, you will be required to pay according to section 7 of Form 656 and file timely tax returns.

How Can We Help?

Given the amount of paperwork required, we’d strongly recommend leaving the job to qualified and trained tax professionals like us. Our tax firm offers various IRS tax-relief services to effectively deal with all your tax problems.

Once you contact us on the given helpline number or visit our official website, we will offer our consultation services to understand your scenario in detail and provide the right solution. Our professionals will also explain all the technicalities involved at every step- right from filling up the form to submitting the relevant documents and post-approval procedures.

You can also reach out to us if your IRS application has been rejected, and we will help file an appeal within 30 days of the date of rejection. With the years of expertise and knowledge that our team has, you can rest assured that we will defend your case to obtain the most favorable outcome possible.