What Is An Offer In Compromise And How Can I Improve My Chances Of Getting One

An offer in compromise (OIC) is a legal agreement between a taxpayer and the Internal Revenue Service (IRS) to settle a tax debt for less than the full amount owed. This agreement allows taxpayers who are unable to pay their tax liabilities to negotiate a mutually beneficial compromise. When evaluating an OIC, the IRS considers factors such as the taxpayer’s ability to pay, income, expenses, and asset equity. If the IRS accepts the offer, the taxpayer must adhere to the terms of the agreement, which typically include making timely payments according to the agreed-upon terms. An OIC provides taxpayers with a viable option to resolve their tax debts while avoiding the burden of excessive financial strain.

What are some tips to improve your chances of getting an OIC?:

• Accurate and Complete Documentation: Ensure all required forms and documentation are accurately completed and submitted. This includes financial statements, income documents, and any other paperwork the IRS requests.
• Demonstrate Financial Hardship: Clearly demonstrate to the IRS that paying the entire tax debt would cause significant financial hardship. To support your claim provide detailed information about your income, expenses, assets, and liabilities.
• Offer Reasonable Settlement Amount: Propose a settlement amount that is realistic and reasonable based on your financial situation. This shows the IRS that you’re genuinely trying to resolve your tax debt.
• Compliance with Tax Laws: Stay current with your tax filings and payment obligations while your OIC is being considered. Continuing to meet your tax obligations demonstrates good faith and increases your chances of acceptance.
• Seek Professional Assistance: Consider seeking assistance from a qualified tax professional or attorney experienced in dealing with OICs. They can help you navigate the process, ensure all requirements are met, and advocate on your behalf with the IRS.
• Provide Supporting Documentation: Include any supporting documentation or evidence that strengthens your case for receiving an OIC. This may include medical bills, job loss notices, or other documents that explain your financial situation.
• Follow Instructions Carefully: Pay strict attention to the instructions supplied by the IRS regarding the OIC process. Missing deadlines or failing to supply requested information can result in your offer being rejected.
• Be Persistent and Patient: The OIC process can take a considerable amount of time, so be prepared to wait for a response from the IRS. Stay proactive by following up on your application and providing any additional information requested promptly.

By following these tips and presenting a strong case to the IRS, you can improve your chances of successfully obtaining an offer in compromise to settle your tax debt. At Frazier Gills, we have the experience and know-how to negotiate with the IRS on your behalf successfully. Don’t go it alone. Give Frazier Gills a call at (214) 337-5000