The Internal Revenue Service Offer in Compromise (OIC) program provides a valuable option for taxpayers who cannot fully pay their tax liabilities due to financial hardship. This agreement between the taxpayer and the IRS allows debts to be settled for less than the total owed amount, offering a fresh start to those burdened by overwhelming tax obligations.
Eligibility for the Internal Revenue Service Offer in Compromise
To be eligible for an OIC, taxpayers must fulfill several criteria:
- All tax returns must be filed.
- All required estimated tax payments for the current year should be made.
- The taxpayer must not be undergoing bankruptcy proceedings.
- The applicant must not have any ongoing investigations by the IRS.
The Process of Applying for an Internal Revenue Service Offer in Compromise
- Determine Eligibility: Start by using the IRS’s pre-qualification tool, which provides a preliminary assessment of eligibility for the Internal Revenue Service Offer in Compromise.
- Submission of Forms: Complete and submit the necessary forms, including the Internal Revenue Service Offer in Compromise form (Form 656), and the financial statement forms 433-A (OIC) for individuals or 433-B (OIC) for businesses.
- Payment of Application Fee: An application fee is generally required unless you meet the criteria for low-income certification which waives this fee.
- IRS Review: The IRS will review the application to determine if the offered amount is appropriate based on the taxpayer’s financial situation.
- Acceptance or Rejection: If the IRS accepts the offer, the taxpayer will need to adhere to the terms of the agreement. If rejected, the decision can be appealed within 30 days.
Advantages of Securing an Internal Revenue Service Offer in Compromise
- Debt Reduction: One of the most compelling benefits is the reduction of the overall tax debt.
- Avoidance of Additional Collection Actions: Successfully negotiating an OIC can halt further collection activities by the IRS, providing financial peace and stability.
- Fresh Financial Start: An accepted OIC can reset financial circumstances, allowing taxpayers to move forward without the burden of unmanageable tax debts.
Why Choose Legal Tax Defense for Your Internal Revenue Service Offer in Compromise?
Legal Tax Defense specializes in IRS negotiation and tax resolution services, offering expert assistance throughout the OIC process. From determining eligibility to preparing and submitting all necessary documentation, our tax debt attorneys are equipped to handle every aspect of your OIC application. We aim to ensure that your offer is fair and has the highest possible chance of acceptance.
Get Started on Your Internal Revenue Service Offer in Compromise Today
Navigating the complexities of an Internal Revenue Service Offer in Compromise can be daunting without expert guidance. Legal Tax Defense is here to provide the support and expertise necessary to explore this option effectively. Contact them today to learn more about how they can help you secure financial relief through the OIC program.
