Offer in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. Unless there are special circumstanced, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement..
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay and includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
Taxpayers should beware of promoters’ claims that anyone’s tax debts can be settled through the offer in compromise program for "pennies on the dollar". Not everyone qualifies for this special program.
The Offer in Compromise program is very complex and time-consuming, sometimes taking as little as six months and other times as much as two years. It is not recommended that someone attempt to file an Offer in Compromise without competent professional assistance and representation.
At Total Tax Service we have over 22 years experience representing taxpayers and dealing with the IRS. Your initial consultation is free. We can advise you as to whether or not you would qualify for the Offer in Compromise program and what other options may be available to you.
Call today for your free consultation.
Toll Free 888-493-8818
TOTAL TAX SERVICE
Oklahoma City, OK.
Nationwide Service Available
Carl W. Wiens, Enrolled Agent
Licensed to Represent Taxpayers Before the IRS
Member: National Association of Enrolled Agents
Member: National Association of Tax Practitioners
Member: American Society of Tax Problem Solvers
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