An Offer in Compromise (OIC) is an agreement filed by a taxpayer which offers a payment to the IRS that is less than the full amount of tax debts owed. Once the IRS has establishes your need for tax relief under one of the following premises they may approve your OIC. Our attorneys have the experience and knowledge to not only deal with OIC’s but to repeal OIC’s that have been revoked.
The IRS will accept an OIC if the amount offered is equal to or greater than the reasonable collection potential (RCP). The RCP determines the value of the taxpayer’s assets; such as property and cars, as well as any expected future income.
Types of OICs
The IRS may accept an offer in compromise if any of these factors prove to be true:
- Doubt as to Collectability – Doubt exists that the taxpayer could ever pay the full amount owed within the remainder of the legal time for collection.
- Doubt as to Liability – A genuine doubt or disagreement regarding the amount of tax debt owed as claimed by the IRS.
- Effective Tax Administration – There is no doubt that the amount owed is correct and there is potential to collect, but an exceptional circumstance like; hardship, public policy, and equity exist as factors when deciding to negotiate an OIC settlement.
- Identity Theft – The taxpayer should not be liable for the amount due because they were a victim of identity theft and did not earn the income that was reported.
Anthem Tax Services will use all the resources of our proven tax professionals when it comes to qualified candidates who meet IRS guidelines.
Negotiated Settlement/Offer in Compromise
Approved by Congress to aid taxpayers, An Offer in Compromise is the ideal solution for resolving your tax problem. A relatively straight forward program ( Offer in Compromise ) , you are either eligible or not. Our highly qualified, trained and experienced staff will work very hard to see if this is the best solution for your IRS tax debt. A tax debt can be legally compromised for one of the following reasons:
- Doubt as to liability – Doubt exists that the assessed tax is correct.
- Doubt as to collectability – Doubt exists that the taxpayer could ever pay the full amount of tax owed.
- Effective Tax Administration – There is no doubt the tax is correct and could be collected but an exceptional circumstance exists that allows the IRS to consider a taxpayer’s OIC.
To be eligible for an Offer in Compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.
Allow yourself the best opportunity to resolve your tax liability by calling today to see if one of our tax professionals can qualify you for an Offer in Compromise . Our professional staff has years of experience in preparing, submitting and settling these cases. By calling one of our Tax Consultants, we will answer any questions you may have and provide you with a better assessment of your situation.