Offer in Compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service. It settles a taxpayer’s tax liabilities for less than the full amount owed. In most cases, taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for an OIC. There are three scenarios under which the IRS accepts Offer in Compromise requests:
Traditionally, an Offer in Compromise involved tedious paperwork and processing times by the IRS are lengthy. However, in 2011, the Fresh Start program was instituted which provides additional relief and a more streamlined process under certain conditions. The ultimate goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, generally you must make an appropriate offer based on what the IRS considers your true ability to pay.
Offer in Compromises have a very low acceptance rate, and you may want to consider hiring a professional to help your chances of success if you feel that you may qualify. The team at Coast One is proud to have a track record in 2018 of saving clients 92% or more on their back taxes when negotiating an Offer in Compromise. Give us a call today for a free consultation to see if you qualify.
If you owe $10,000 or more in back taxes to the State or IRS, the team of tax experts at Coast One Tax Group is here to help.