An Offer In Compromise (OIC) between the taxpayer and the IRS is a popular way of greatly reducing the tax debt for many taxpayers. The former IRS agents, tax attorneys and Enrolled Agents at Five Star Tax Resolution have helped hundreds of Americans take full advantage of this program. To find out if you qualify for an OIC or other IRS tax settlement, contact us today by calling 1.800.516.5917 or by contacting us online.
An Offer in Compromise gives taxpayers who owe more back taxes than they can possibly pay, an opportunity to make a one-time settlement for a substantially reduced amount. As with all arrangements with the IRS, there are certain terms and conditions that must be met in order to qualify for an OIC.
There are guidelines for accepting an Offer in Compromise and they are comprised of several evaluating points. The IRS will review past, current and even future financial situations with regards to a taxpayer when it comes to whether an Offer in Compromise will be accepted or rejected. One or more of these criteria are emphasized as the IRS makes the decision on an individual taxpayer’s eligibility for an OIC. Each taxpayer’s circumstance is different. It is important to know which of the criteria the IRS is focused on prior to filing the initial Offer in Compromise. It should be noted that not everyone qualifies for an IRS Offer in Compromise. The time involved in negotiating an OIC varies from case to case, with the average time spent being 8 to 12 months. Therefore, working with Five Star Tax Resolution to become pre-qualified for an OIC is the first step to take.
An Offer in Compromise consists of a process which requires having necessary financial records and statements on hand, completing all the appropriate IRS forms, the taxpayer being current on all tax filings, compliance with IRS regulations, and finally, submitting the OIC for review to the IRS. After the OIC is submitted to the IRS, they start the investigation of their ability to collect from the taxpayer. This is based on the taxpayer’s individual situation as well as the taxpayer’s tax return filings. Satisfying the criteria points is very important and many taxpayers have their OIC returned for lack of required information. Complying with the many procedural requirements is necessary if an Offer in Compromise is to be fully reviewed by the IRS. Having experts guide you through this compliance stage of the OIC is paramount and is one of the many benefits in hiring an organization of tax professional like those at Five Star Tax Resolution.