An Offer in Compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that resolves the taxpayer's tax liability. The IRS has the authority to settle, or compromise, federal tax liabilities by accepting less than full payment under certain circumstances. A variety of IRS formulas exist to determine whether a taxpayer qualifies for relief. It is critical to employ an experienced consultant to structure the request. Otherwise, the taxpayer might end up paying more than needed, or have their request completely denied.
Levy and Associates is highly experienced at using the Offer in Compromise process, which is an excellent vehicle to resolve federal tax liabilities.
The first step in this process is to file all delinquent tax returns. This step must be completed before the IRS will even begin to consider the eligibility of the client for an Offer In Compromise agreement. Our office will prepare all returns for you.
The IRS may legally compromise for one of the following reasons: doubt as to liability, when doubt exists that the assessed tax is correct; doubt as to the collectability, when doubt exists that the taxpayer could ever pay the full amount of tax owed; or effective tax administration. Under effective tax administration, there is no doubt that the assessed tax is correct and no doubt that the amount owed could be collected, but the taxpayer has an economic hardship or other special circumstances which may allow the IRS to accept less than the total balance due.
By scheduling a meeting with Levy and Associates, we can determine your eligibility for an Offer In Compromise and prepare the request for the IRS.
Contact us today to schedule an appointment with a specialist from Levy and Associates.