Offer in Compromise
Handled by Our Mississippi Tax Lawyer
Maybe you didn’t know that the IRS has an offer in compromise program that can be utilized by the tax payer when liability has been incorrectly assessed or when total liability is more than you can afford to pay. This program allows individuals to settle their tax debt for less than the full amount they owe.
The IRS will consider your unique circumstances, including your:
- Asset equity
- Ability to pay
An offer in compromise is usually approved when the amount that an individual offers represents the most the IRS can expect to collect within a reasonable time period. Not everyone is eligible for this program, and the application process is lengthy. It is highly recommended you retain the services of an experienced tax attorney to guide you throughout every step of the way, ensuring no paperwork or deadlines are missed.
What is Offer in Compromise?
An offer in compromise (OIC) is considered to be an agreement between a taxpayer and the IRS that settles their tax liabilities for less than the full amount. A taxpayer will not qualify if they can pay the full amount through installment payments.
For more information concerning tax payment options, please visit the IRS website.
To qualify a taxpayer must:
- Filled all tax returns
- Made all tax payments for current year
- If they are a business owner they have made all required federal tax deposits for quarter
The IRS will not accept an offer in compromise if the amount offered by taxpayer is equal or greater to their reasonable collection potential (RCP). This is how they measure if the taxpayer can pay. It includes the tax payer’s:
- Real Property
- Bank Accounts
- Owned Property
- Future Income
At Damiens Law Firm, PLLC, our experienced tax specialists can help you determine if you might qualify for an offer in compromise, or if a tax payment plan would be the better route for you to go. Using our extensive experience and in-depth knowledge, we can give you well-informed advice about your situation. You can rely on us for the effective services you need and deserve.
Fill out the form at the bottom of this page for a free consultation if you need help solving your tax problems.
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