If you owe back taxes, the IRS Offer in Compromise (OIC) program may be a solution. The OIC program allows qualified individuals to negotiate to pay less than what they owe to settle a tax debt.
While the IRS provides forms that you can fill out on your own, you can benefit from working with a qualified tax attorney if you want to negotiate a settlement through the Offer in Compromise program.
Only about 25% of the Offers in Compromise submitted to the IRS are accepted. A Tax attorney will review your unique situation and, if trustworthy, will be honest about your chance of acceptance. If you won’t qualify they can suggest alternate solutions such as an installment plan and help you get the best plan you can.
If your tax attorney feels your chances of an Offer in Compromise are good, they can recommend what amount your OIC should be based on their experience and your financial details. An experienced tax attorney will then prepare the paperwork to explain your situation in the best light to increase the chance of approval.
After your Offer in Compromise is sent to the IRS, they will ask for further financial documentation to confirm the details you provide in your offer. Your tax attorney will communicate with the IRS on your behalf and help you prepare and submit your financial evidence.
If, despite your best efforts, your Offer in Compromise is rejected by the IRS, your tax attorney will help to submit a new offer or appeal the IRS decision. The process can be overwhelming, and an experienced tax attorney could be the deciding factor in getting a positive settlement.