OFFER IN COMPROMISE
How to settle your IRS tax dept for less than the full amount owed
If you received a Notice from the IRS saying you owe current or back taxes and, for legitimate reasons, are unable to pay your full tax liability, you may qualify for an Offer in Compromise.
Our tax professionals guide you through the process from IRS Notice to application and resolution.
An Offer in Compromise (OIC) is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. The OIC provides eligible taxpayers a way of paying off their tax debt.
To be considered, you must first prepare an offer based on IRS considerations:
- Ability to pay
- Asset equity
Applicants must meet all offer terms (Section 7) in IRS Form 656:
- Filing all required income tax returns and making all tax payments
- Refunds due (calendar year your offer is accepted) will be applied to your tax debt
- Pay Form 656 application fee
- Federal tax liens (if applicable) are not released until your offer terms are satisfied
Cash: Requires 20% of the total offer amount to be paid with the offer and the remaining balance paid in five or fewer payments within five or fewer months as of the date your offer is accepted.
Periodic Payment: Requires the first payment to be paid with the offer and the remaining balance paid in monthly installments (6 to 24 months) in accordance with your proposed offer terms.
Once we determine your eligibility, your tax professional will review, prepare, and submit your IRS Offer in Compromise application to include:
• Form 656 Offer *Individual Taxpayer: Use the OIC Pre-Qualifier to assist in determining your tax dept offer amount
• Form 433-A (OIC) Collection Information Statement for Wage Earners and Self-Employed Individuals (if applicable)
• Form 433-B (OIC) Collection Information Statement for Businesses (if applicable)
• Application Fee: $205 (unless you meet Low-Income Certification Guidelines)
Owing the IRS causes sleepless nights... Rest assured, we can help resolve this issue.