Offers in Compromise

Despite the common wisdom out there, you can settle for less than what you may owe the IRS! This is the general idea behind what’s called an “Offer in Compromise“. Many people – every year – are eligible to negotiate with the IRS to pay a smaller amount than what the IRS may say they owe.

Understanding Offer in Compromise

An Offer in Compromise (OIC) is a program provided by the Internal Revenue Service (IRS) that allows qualifying taxpayers to settle their tax debt for less than the full amount owed. It’s essentially a negotiation between the taxpayer and the IRS to reach a compromise on the outstanding tax debt. This option is available for individuals, businesses, and self-employed individuals who are struggling to pay their tax liabilities.

If you are successful in qualifying for an Offer in Compromise (OIC), some or all of the tax, penalties, and interest you owe could be negotiated down. The best part is that all federal tax liens will be released if you are successful.

Are you eligible for an Offer in Compromise?

Before applying for an Offer in Compromise, the IRS has some conditions that you must meet. These include:

  • Completed all necessary tax filings and met all estimated payment obligations.
  • Do not currently have an ongoing bankruptcy case.
  • Hold a valid extension for the current year’s tax return if applying for the present fiscal year.
  • As an employer, you must have made tax deposits for both the current quarter and the previous two quarters before initiating the application process.

How can you successfully handle an Offer in Compromise?

Some taxpayers handle their own Offer in Compromise, and unfortunately end up worse off than when they started. Why? Due to a lack of experience dealing with the IRS, some taxpayers don’t negotiate right and offer too much. Others make the big mistake of saying the wrong thing or being deceptive, which could result in facing criminal prosecution for tax fraud. This is a very risky proposition.

No matter who you are or what your background is, always assume this: the IRS knows more about taxation and what to look for in a cheater or tax evader than you do.

If you would like to avoid complications with your Offer in Compromise, our team of experienced professionals can do the work for you. We can handle the entire case for you, limit the amount of your offer, and keep you on the positive side of the law.

With our assistance, you’ll never be required to meet with the IRS. The negotiations are based on the proper valuation of your assets, typical living expenses, and monthly income.

People often qualify for an Offer in Compromise (OIC) when:

  • Their assessed tax is incorrect.
  • The IRS does not think the full amount of tax owed could ever be paid.
  • The taxpayer has a serious economic hardship—an expensive, life threatening illness, for example.

Many people find it impossible to ever pay off the IRS. Tax penalties and interest can make it very hard. Sometimes you need to take proactive action so you can get your life back.

Most of the time, people who are dealing with these types of tax issues cannot get a home mortgage or car loan. The IRS can sometimes make decisions based on incomplete facts. You owe it to yourself to partner with a tax specialist who understands IRS processes.

Are you considering an Offer in Compromise? Consult with us today!

At the law office of Steven N. Klitzner, we will negotiate an offer in compromise with the IRS on your behalf. Dealing with tax problems can be overwhelming and stressful, which is why it’s crucial to have a skilled tax attorney by your side. Let us handle your Offer in Compromise so you can focus on moving forward with peace of mind. With an expertise in tax law and dedication to helping individuals like you resolve IRS issues, we’re here to guide you every step of the way.

Call the office of Steven Klitzner at (305) 564-9199 for a free and confidential consultation today!

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