Successful IRS Offers 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.
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed. Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for an OIC in most cases. For information concerning tax payment options including installment agreements, refer to Topic No. 202.
Reasons for the Offer
The IRS may accept an OIC based on one of the following reasons:
- First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this criterion only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.
- Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
- Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
If you are facing a large liability to the IRS, contact our expert tax attorneys in San Diego, El Cajon, or Irvine, to receive a free consultation. We are happy to help and will always be upfront with your options!
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