Offers In Compromise

Have you ever heard of debt relief? Sometimes it is used in reference to developing nations, and other times it refers to individuals whose debt gets negotiated down to a manageable amount in order to avoid bankruptcy. Offers in compromise, while not related to problems of debt, is similar. Some people, for whatever reason, end up owing the IRS far more money in taxes than they can reasonably be expected to pay. These circumstances are rare, as the IRS doesn't accept less than what they are owed in taxes in very many cases.

Offers in compromise explained

Offers in compromise (OICs) are settlements between an individual or a business and the IRS. Through an offer in compromise, one's taxes can be reduced significantly through settlement with the IRS. The IRS would consider offering someone an offer in compromise only in particular situations, and for these situations, specific procedures are followed. In fact, the IRS uses established formulas to determine who qualifies for offers in compromise, and if they do qualify, for how much they qualify. As you may have guessed, OICs are used in extreme cases only, after all other options have been depleted.

Whether or not you qualify for an offer in compromise depends on the amount of money you earn and the amount of money you owe the IRS in taxes. Your "reasonable collection potential" (RCP) will help to determine how much money the IRS thinks they can reasonably obtain from you, without too much trouble. Financial troubles may place someone in a position that prevents them from fully paying back the taxes owed; other circumstances in which the IRS may consider offering offers in compromise include a dispute as to whether the taxes owed are in fact correct. Again, because the IRS rarely makes significant errors that they will admit to, this is a rare situation.

Before you can be offered one…
Getting the IRS to concede on any point may sometimes appear to be difficult. There is always a mountain of paperwork involved, and while you may have a legitimate complaint or concern that could qualify you for an offer in compromise, paperwork and proof of that claim comes first. Because tax problems are complicated and frustrating things to have to go through, it's usually a good idea to consult a professional. Taxes can cause a lot of stress and frustration to people, especially when they don't understand the laws they are dealing with. Getting an advocate to work on your behalf is often the best strategy for tackling any IRS-related problem, and that includes offers in compromise.

Here at IRS Problem & Tax Lien Help Group, we have the knowledge and expertise to guide you through offers in compromise. Through our office in California, we are equipped to serve clients across the nation who are experiencing difficulties with the IRS or with their taxes. Because we have an established relationship with the IRS, we can work on your behalf to sort out your tax situation. Dealing with the IRS takes skill and extensive knowledge of tax policies and procedures, and let's face it: not everyone has the skills or knowledge to handle their tax problems on their own. With the professional negotiation skills of the specialists at IRS Problem & Tax Lien Help Group, you are placing your tax problems in good hands.

Remember, our initial consultations are always free, and are always confidential. Contact a representative here, and ensure you obtain tax relief. The call is free, the advice just might be priceless.

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