An Offer in Compromise is a tax settlement method offered by the IRS. Consequently, it allows taxpayers to settle their tax debt for less than they owe. In fact, the IRS only accepts these offers if it believes that the taxpayer cannot make the payment in full or through a payment plan. Furthermore, the IRS also must believe that the offer is equal to or greater than the amount the agency could expect to collect from the taxpayer.
Understand your options and receive a tax consultation today. We’ll conduct a tax analysis based on your specific situation and present available solutions for consideration.
- Analyze your financial situation and help you decide whether an OIC would be appropriate for your situation.
- Ensure your balance is minimized through appropriate tax resolution measures prior to IRS negotiation.
- Submit your package to the IRS and negotiate your lump sum payment amount and/or payback period.
- Handle all IRS communications on your behalf.
A. There are three different ways that a taxpayer can qualify for an Offer in Compromise.
Q. Can anyone qualify for an Offer in Compromise?
A. No. It is actually unlikely that the IRS accepts an Offer in Compromise request. In fact, the IRS typically approves well under 50% of OICs requested. Before applying for OIC, you should read through the requirements in detail to see if you may qualify. We recommend you Schedule a Consultation with us to determine whether an OIC is a possible option for your situation. We do not recommend contacting the IRS on your own.
Q. How long does the IRS take to make a decision on an OIC offer?
A. Typically, it takes six to nine months on average for the IRS to respond. Staff, funding, and the time of the year the OIC is submitted all influence the decision process. It is common for the IRS to take up to one year to make a decision. If the IRS doesn’t respond within two years, the offer is automatically approved.
Q. What is the cost of your Offer In Compromise service?
A. Our IRS tax resolution fees are based on our flex-fee structure, and all costs are pre-approved by you when you decide to hire us. We offer payment plans, if needed, and set our fees so you do not have to worry about unexpected legal bills. There are no surprises, no add-ons. Because every situation is different, we recommend you Schedule a Tax Consultation so we can discuss your case in detail.