What is an Offer in Compromise?
A qualified Offer in Compromise (OIC) can be a very effective and dramatic way to settle tax debt!
Claims and Expectations
Though the Offer in Compromise continues to be an effective tool to dramatically reduce tax liability, and has spawned an entire industry claiming ‘Pennies on the Dollar’ settlements, we would like to clarify what exactly the Offer in Compromise can achieve and what claims should be dismissed.
Claim #1: The OIC can settle tax debt for ‘pennies on the dollar’.
True and False. While we find this statement to be grossly misleading, as it implies simplicity to settling outstanding tax debt, the Offer in Compromise can dramatically reduce a taxpayer’s tax liability. In most cases, savings can be in the thousands of dollars and the taxpayer can finally get a fresh start. To qualify for an Offer, however, is very specific, and if not done correctly can cause much more harm than good.
Claim #2: Every taxpayer qualifies for an Offer in Compromise.
False. Although this remains to be one of the more popular advertised tax relief programs, not every taxpayer qualifies to have their tax debt reduced through an Offer in Compromise. In fact, the percentage of qualifying taxpayers is relatively low. Getting approved is a very specific process, and is one that must be approached carefully.
Claim #3: All firms offer the same Offer in Compromise service.
False. To accurately prepare an effective Offer in Compromise takes time and experience. There is simply no getting around the work that must be done to accurately draft a substantial offer. As you would more than likely hire a seasoned attorney to represent you in court for a criminal matter as opposed to a first year law student, the same can be said of the experience needed towards your tax obligation. The upfront fee is fair, and the savings and results can be dramatic for the qualifying taxpayer.
Besides the OIC, there are other popular settlement options:
- Penalty abatement, which removes penalties from accrued liabilities
- Partial payment plans, which expire before the tax debt is paid in full
- CNC status, where IRS collections are placed on indefinite hold
Getting Help with your IRS Tax Settlement
The first step towards successful resolution is to acknowledge that your tax debt won’t go away on its own and to seek professional assistance. Our firm of tax relief professionals has helped thousands of individuals and businesses just like you stop forced collections and finally resolve their tax debt.
Call 1-877-860-3731 today or Click Here!
Our tax relief professionals will take the time to discuss your issue free of charge, and help map out the best solution moving forward.