Offer in Compromise

Are you struggling to pay back taxes?

OFFER IN COMPROMISE

Some taxpayers genuinely want to resolve their tax debt yet find themselves unable to do so based on their current financial condition. Fortunately, the Internal Revenue Service (IRS) will sometimes work with taxpayers by agreeing to an Offer in Compromise (OIC).

An Offer in Compromise is a tax settlement solution that allows you to only pay back a portion of your debt. In certain situations, the IRS may forgive all your tax debt. However, that situation is rare.

Filing an Offer in Compromise  is not straightforward and usually requires the assistance of a tax professional.

Levy & Associates can help resolve your tax problem by creating an OIC proposal. Please note that each case is unique. Contact us today for a free initial consultation.

What Is an Offer in Compromise (OIC)?

How does an Offer in Compromise work? An Offer in Compromise (OIC) is an excellent option for resolving federal tax liabilities (and certain states offer a similar solution). It essentially allows you to only have to pay back a portion (or none!) of your back taxes.

While this is an effective vehicle to resolve the tax debt, it is important to note that not every client will qualify for an Offer in Compromise. We see far too many taxpayers taking the time to create an OIC only to have it rejected.

Fortunately, seeking professional representation will oftentimes enhance the likelihood of an OIC being accepted. The team at Levy & Associates has years of experience dealing with the IRS. In fact, some of our team members are former employees of the IRS that worked in the OIC division.

We possess an intimate understanding of the Offer in Compromise process and will work with you to determine the best resolution based upon your financial condition. Contact Levy & Associates today to learn more about the Offer in Compromise process and whether this might be the best solution for your needs.

The yearly acceptance rate for Offer in Compromise proposals is generally less than 45 percent. Consequently, having a professional represent you is a far better option than going this alone.

Nonetheless, the IRS has no obligation to forgive your tax debt. Speak with a knowledgeable tax resolution professional at Levy & Associates today to learn more about submitting an Offer in Compromise and if you would qualify. We’re also happy to answer other tax resolution questions about liens, levies, the IRS’ Fresh Start Program, and more.

Ways the IRS Considers an Offer in Compromise: Levy & 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 your eligibility for an Offer in Compromise. Levy & Associates 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)
  • 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 that allow the IRS to accept less than the total balance due.

By scheduling a meeting with Levy & Associates, you can determine your eligibility for an Offer in Compromise.

IRS Fresh Start Program

What is the Fresh Start program with the IRS? The Fresh Start Initiative can help you get back in good standing with the IRS. The goal is to eventually eliminate all your tax debt so your life can return to normal.

The IRS expanded its Fresh Start Initiative program in 2012 in order to assist more struggling taxpayers. Thanks to the Fresh Start Initiative, the likelihood of having an Offer in Compromise proposal accepted actually improved. Acceptance rates are now higher than they were before the introduction of this program.

Keep in mind that an Offer in Compromise is not always the best way to settle tax debt. Before moving forward with the process, you should meet with a tax professional. Levy & Associates is happy to offer advice through a free consultation. We’ll walk through your unique situation and arrive at the best solution for your needs.

Advantages of an Offer in Compromise

Is an Offer in Compromise a good idea? There are situations in which pursuing an OIC is your best option, while in other circumstances you may be better off considering an installment agreement.

There are obvious advantages of having a substantial portion of your debt eliminated, but it can take a significant amount of time and effort on your end. The entire process can take a year or longer! Hiring a tax professional can take the burden off of your shoulders. We have the knowledge and resources needed to resolve your tax problems.

“Greg, Lance, Stephanie and team are some of the most amazing people I’ve had the pleasure of working with! They are on point when it comes to helping our crew out with our IRS tax issues! They saved our company and the owner so much money already! Thankful for Levy & Associates!!”

– Erica Dell

“I had an IRS issue that no one was able to help me with. Someone recommended that I call The Levy Group so I did. They helped me with resolving a very difficult situation. I very thankful with what they were able to accomplish.”

– David Carpenter

Contact Levy & Associates for the Best of the Best Tax Resolution Services in the Country

Levy & Associates is available 24/7. We’re happy to answer any questions you have about the tax resolution process and address any concerns about your specific situation.

There’s never a good time to have a tax problem, and the time-consuming process will take away from your business or family if you try to face this alone. Let us handle and coordinate communication, so you can return to your daily life.

Latest Resources

Do Beneficiaries Pay Taxes on Life Insurance?

Read More

Millions Still Don’t Have Their Refund—Here’s Why

Read More

Summary of the Tax Provisions of the Inflation Reduction Act

Read More