The IRS Offer in Compromise (OIC) program is available to taxpayers who owe the IRS more than they could ever possibly pay. OIC gives the IRS authorization to reduce outstanding tax liabilities, including interest and penalties, for less than the full tax due.
The IRS may accept an Offer in Compromise based on:
- Doubt as to Collectibility
- Doubt as to Liability
- Effective Tax Administration (Hardship Cases)
Any person or entity that can incur a federal tax liability can submit a request for an OI C. This includes:
- Individuals
- Married Couples
- Incorporated Businesses
- Partnerships
- Non-Profit Organizations
- Receivers
- Trustees of Trusts
- Executors of Estates
An OIC is effective for the entire amount of taxes owed, including penalties and interest. Various federal tax liabilities, regardless of tax type, age or amount, can be combined into oneOIC.
The IRS objectives of the Offer in Compromise are:
- To efficiently collect what is reasonably possible with the least amount of government expense
- To resolve tax indebtedness in the best interest of the taxpayer and the government
- To give taxpayers a new start enabling them to file and pay future taxes when due
- To collect funds that cannot be collected otherwise
It is vital to have a qualified tax expert assist in the preparation of the OIC. Too often the taxpayer’s submission is declined due to lack of knowledge of the OIC process. Or even worse, the taxpayer has provided information that will be detrimental to his case. Instant Tax Solutions tax professionals are skilled in the OIC process, providing the taxpayer a much better chance that his OIC request will be successful.
