Offer in Compromise

Are you overwhelmed by your IRS debt and worried that you'll never be able to pay it off? The good news is that there's hope. With an Offer in Compromise (OIC), you can potentially reduce your tax liability and get a fresh start. Our team is here to guide you through the complex process, ensuring that you meet all the requirements and increase your chances of success.

An Offer in Compromise is an agreement between you and the IRS to settle your debt for less than the full amount owed. It's essentially an amnesty program that allows taxpayers who are unable to pay their debts in full to make realistic and manageable payments based on their financial situation. By qualifying for an OIC, you can save thousands of dollars in taxes, penalties, fees, and interest.

However, qualifying for an Offer in Compromise is not easy. The IRS has strict eligibility requirements, and they will assess your Reasonable Collection Potential (RCP) to determine the amount you can pay. This involves providing detailed financial and personal information, which our team will help you gather and analyze to ensure accuracy.

Thanks to the IRS's Fresh Start Program, the eligibility criteria for an OIC have expanded. Previously, the RCP was calculated based on a taxpayer's discretionary monthly income multiplied by 60, and the maximum total tax debt allowed was $25,000. Now, the IRS only considers 12 to 24 months of discretionary income, and the total debt limit has been raised to $50,000.

To help you determine if you qualify for an Offer in Compromise, we offer a free IRS transcript investigation and analysis upfront. Unlike other firms, we provide this service at no cost because we genuinely want to assist clients who can benefit from our expertise. We only take cases where we can make a difference and help you achieve the best outcome.

While an Offer in Compromise is a viable option, it's not the only one available to you. If you can pay off your debt within a reasonable timeframe, you may qualify for a streamlined installment plan. This plan allows you to make equal monthly payments over a specific period, minimizing penalties and reducing your overall debt.

For tax debts of $25,000 or less, setting up a streamlined installment plan is straightforward and can be done online through the IRS website. If your debt falls between $25,001 and $50,000, you'll need to arrange a Direct Debit or Payroll Deduction agreement. Any debt exceeding $50,000 requires a more extensive verification process and may involve other options, such as a partial payment plan.

Choosing the right approach for your tax debt can be challenging, but our team is here to help. We offer a free pre-qualification consultation to assess your eligibility for an Offer in Compromise or explore alternative options like installment agreements, penalty abatement, or the IRS Currently Not Collectible program. With our expertise, we'll guide you towards the best solution for your unique situation.

It's important to note that an Offer in Compromise is not a guarantee of settling your tax debt for "pennies on the dollar." Advertisements making such claims without a thorough pre-qualification process and credible references should be approached with caution. Calculating a reasonable collection potential is a complex task, and success is not guaranteed.

While an Offer in Compromise may not be a silver bullet, it can provide much-needed relief for taxpayers burdened by a significant tax liability. By working with our reputable tax firm, you can negotiate a reasonable payment plan with the IRS and take the first step towards regaining control of your financial life. Contact us today to determine if you qualify for an Offer in Compromise and explore your options.