An Offer in Compromise (OIC) is a tax settlement, where taxpayers can settle their tax liabilities with the IRS for less than the balance owed. The government and the taxpayer enter into an agreement where the taxpayer agrees to pay a fixed amount and also agrees to pay all tax liabilities in full over the next five years. In exchange for this promise of compliance, the IRS will forgive all of the taxpayer’s liabilities provided they abide by the terms of the Offer in Compromise.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
- Ability to pay;
- Expenses; and
- Asset equity.
The IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise.
At RJS LAW, we are extremely proud of the numerous Offers in Compromise that we have submitted for our clients. Here are a few of our real-life results from our successful IRS Offers in Compromise.
If you are facing a large liability to the IRS, contact our expert tax attorneys in San Diego, El Cajon, or Orange County, to receive a free consultation. We are happy to help and will always be upfront with your options!
For more information, please see: