Is an Offer in Compromise the next step for you financially? Are you ready to get out from under your debilitating tax? If you feel paralyzed by tax debt, it might be time to consider an Offer in Compromise, which allows you to settle that debt for a portion of the total amount you owe the IRS. Here’s what you need to know.
What is an Offer in Compromise?
An OIC, or Offer in Compromise, is a tax repayment plan offered by the IRS. It’s an opportunity for the IRS to forgive a portion of the tax debt to allow for repayment by the taxpayer, who then pays the balance. The goal is a settlement that benefits both the taxpayer and the tax collector.
There are certain standards the IRS considers that could qualify you for this repayment plan. Here are the factors they evaluate when approving or rejecting an offer in compromise:
- The taxpayer has exhausted their other options for paying the taxes owed
- The taxpayer cannot have a history of filing for bankruptcy
- The IRS isn’t confident they can collect the tax debt in its entirety from the individual or business
- Any involved party doubts the accuracy of the amount of taxes owed to the IRS
- It allows the IRS to provide more effective tax administration to the individual or business
If your tax debt has taken over your life and sense of security, there are options to help you get straight with the IRS while also recovering financially. However, it’s a good idea to have someone knowledgeable on your side when you work toward acquiring an Offer in Compromise. The lawyers at McCutchen McLean, LLC are the professionals you’ve been looking for. Contact them today to learn about your options.