Offer In Compromise
Offer In Compromise
Receiving IRS notices and facing enforcement actions can be quite stressful for taxpayers. However, the IRS also offers a program to help taxpayers get debt relief due to not being able to pay back taxes. The IRS Offer In Compromise (OIC) is created as a component of the IRS Fresh Start Program and functions as a lifeline for taxpayers with substantial tax obligations.
Imagine having the opportunity to pay off your tax bill for a little portion of what you owed. The OIC program provides just that. If you qualify for the OIC program, the IRS accepts a smaller payment to settle your tax liability as part of the agreement. However, getting qualified for the program is quite a hassle. The process involves complex paperwork, deadlines, and meeting with the IRS. Lifeback Tax Relief specializes in getting its clients OIC settled with the IRS. We have successfully solved back taxes for thousands of our clients and helped release their federal tax liens with the help of the OIC program. On average, our client pays only about 5% of tax owed to the IRS and has even settled back taxes for as low as only $1.00 for many of our clients.
Here is the eligibility criteria taxpayers need to meet in order to qualify for an OIC program.
- Inability to Settle Outstanding Tax Liability: Taxpayers have to prove that they do not have the funds to pay off their current tax liability.
- Tax Return Filing Compliance: Before submitting an OIC application, taxpayers must be in compliance with filing of their previous tax returns. You must be up to date with your filed tax returns.
- Compliance with Estimated Tax Deposit (ETD) For self employed individuals it is crucial to be up-to-date with If Estimated Tax Deposit.
- Submission of Required Forms and Documentation: Applicants must submit Forms 433- A: Collection Information Statement for Wage Earners and Self-Employed Individuals and Form 656: Offer In Compromise to the IRS along with the necessary supporting documents.
Even a minor error or miss calculation in the paperwork or forms can lead to the IRS rejecting your OIC. Hence, it is recommended to seek professional help when it comes to OIC. The taxpayers can qualify for the OIC under the one of the following:
- Doubt as to Liability: This applies when there is a legitimate uncertainty about owing any portion of the tax owed.
- Doubt as to Collectibility: If you lack sufficient assets or have little or no disposable income after your monthly expenses, you can qualify under this condition.
- Effective Tax Administration: In cases where you possess the necessary assets to fully cover the balance, but liquidating them would lead to financial hardship, this category can warrant acceptance of the offer.
Qualifying for an Offer In compromise can be tricky, however, once the IRS agrees to grant you the relief, you will get a fresh start, a clean slate. Almost all of the debt can be settled for just pennies on the dollar. With an OIC, the IRS doesn’t always accept the offer in the first go, some offers can be accepted through OIC appeals. If your OIC is rejected, our team will review, analyze and if needed file Form 13711 to have an appeal hearing with the OIC appeals.
Trusting LifeBack Tax Relief with your IRS Offer in Compromise will make your life stress free and sorted. Our skilled tax professionals have sorted through the intricacies of the IRS’s processes, making us your trustworthy advisers and one of the tax leading companies in the tax resolution industry. We understand the Internal Revenue Manual (IRM) with all the codes, to get your offer accepted with the IRS. With our countless amazing success stories, where most of our clients only pay about 5% of the original tax liability, we are the right choice for you. Call us today for FREE consultation to take advantage of this amazing OIC program and gain back your financial freedom.
With our team of certified tax professionals, you will surely get the best offer from the IRS in record time.
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Offer In Compromise
Offer In Compromise is a tax resolution that enables people to settle their tax burden for less than what they are initially owed. This offer is only for people who are unable to pay their tax burden in full amount. The IRS does an in-depth analysis of each taxpayer's financials before granting them an OIC.