Are you familiar with an Offer-in-Compromise?
The IRS has a program that lets a taxpayer, who has been incorrectly assessed or cannot pay, settle their tax debt for less than what they owe.
We help clients resolve their IRS tax debt & their Mississippi tax debt through the offer-in-compromise program (OIC).
Most clients often wonder how much they have to offer. To determine a reasonable offer amount, we estimate the Taxpayer's Reasonable Collection Potential (RCP). The RPC is used to determine the taxpayer's settlement amount.
What’s A Reasonable Collection Potential?
When taking on a new client, we first take a look at their household finances to determine their household RCP. It's worth noting that the Mississippi Department of Revenue and the IRS determine this number using a different method. However, the calculations for both revolve around combining the taxpayer's assets and future income, along with expenses.
To qualify for an Offer-in-Compromise, the taxpayer must accurately report and document their income and expenses. The IRS is very stern and historically only accepts about 20% of the Offer-in-Compromises that are filed. However, a taxpayer's likelihood of qualifying for an Offer-in-Compromise increase dramatically when working closely with a tax attorney (about 90%).
We have helped hundreds of clients because of our understanding of the regulations and requirements, which can exponentially increase your chances of qualifying.
At Damiens Law Firm, we specialize in representing clients who face the IRS. By quantifying and methodically calculating your RCP, we can help you achieve a positive result.
If you are a Mississippi resident and have questions regarding Offer-in-Compromise, contact me at 601-957-9672 or visit our website.