Naples & Fort Myers IRS Offer in Compromise Attorney

If you are unable to pay IRS tax debt, you may be able to reduce the amount you owe through an Offer in Comprise (OIC). You will want to work with a tax attorney if you apply for an OIC as it can be a complex process.

Often, the best solution to resolve past tax debt that is due is an OIC, if you qualify. The average discount on accepted OICs was 88 percent, which is 12 cents on the dollar.

The Offer in Compromise (OIC) is an IRS program created by Section 7122 of the Tax Code. Under OIC, there are two main ways it can be negotiated with the IRS: doubt as to collectability and doubt as to liability.

In Doubt as to Collectability, the taxpayer is unable to pay the full tax debt. This is based on the taxpayer’s personal financial situation such as income, expenses, and assets.

In doubt as to liability, they taxpayers says they do not owe the debt.

If you submit an OIC, the IRS cannot collect tax liability through means of liens and levies during the time in which the OIC is being processed, the 30 days following the rejections of an offer or during the appeal of the OIC, due to the IRS Restructuring Act. This gives a person extra time to gather money to pay debt and stops the IRS from seizing assets.

If the OIC is accepted, payment terms are through cash (about 20 percent with submission of offer and 80 percent paid over five months of acceptance) or deferred payment (24 monthly payments that start with the submission of your offer).

If you find yourself with IRS tax problems, get them sorted out fast with Naples and Fort Myers IRS Tax attorney Todd Babbitt. Contact him today for a free consultation about your tax problem and OIC.