An Offer in Compromise (OIC) is an agreemnt with the IRS to settle your tax liaiblities for less than the full amount.  It is based on your inability to pay the full amount within the statutory collection time.  An Offer in Compromise is similar to a Partial Payment Installment Agreement except the OIC is final whereas the PPIA may be modified if your income increases.

In determining your eligibility for an Offer in Compromise your Tax Attorney will review what the IRS considers.  The IRS considers the taxpayers current financial situations, your ability to pay, and any equity you may have in assets.  For those taxpayers that do qualify for an Offer in Compromise thousands of dollars can be saved in taxes as well as penalties and interest.  The best thing is is that this is a final agreement.

An Offer in Compromise is a program set up by Congress to allow taxpayers to settle their tax debts for less. It allows a taxpayer who cannot afford there full IRS debt to settle for less… sometimes much less.

Basically, there are three types of Offer.

1. Cash Offer – the full offer must be paid within 5 months of acceptance of the Offer.

2. Short Term Deferred Offer – this offer must be paid in equal monthly installments over a 24 month period.

3. Long Term Deferred Offer – payable in equal monthly installments over the number of months that you have remaining on the Collection Statute.

When the IRS considers whether to accept an OIC or not, they make a determination on a case-by-case basis their likelihood of getting all of their money and how much they will have to spend in doing so.  If they believe that they will spend more money than they can recover, it doesn’t make sense and they will accept an OIC.  Now, their calculation is somewhat more detailed and complex but there are several factors that your Tax Attorney can use to influence their opinion.  Each taxpayer’s case is unique and brings with it a set of circumstances that can be used to prove to the IRS that an OIC is their best way to get the most money from you.

Other Options:

• Installment Plans.
• *** You are here: Offers in Compromise.
• Penalty Abatement.
• Innocent Spouse.
• Statute of Limitation Analysis.
• Tax Bankruptcy.
• Currently Not Collectible Status.