Offer in Compromise (OIC)
What is Offer in Compromise?
This program is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed. This is only available in limited circumstances for taxpayers who have exhausted all other relief options.
This can be the ideal tax relief solution for those looking to resolve their tax problem as it can result in significant savings.
This is a less than common tax solution and is only given if the IRS agrees to a settle.
How does it work?
The IRS and the taxpayer will acknowledge that the tax debt can not be fully recuperated by a feasible means. This mean that the taxpayer is unable to make payments to the IRS due to lack of income but also lack of valuable assets for the IRS to seize.
- You will then make the best possible offer to settle your debts with the IRS in the form of an amount that you can afford even if it falls short of the actual balance
- The IRS will then accept this amount offered and agree to reduce your tax debt to match the amount you can pay.
- Once you have paid the agreed upon amount, the debt will be deemed “paid in full” and that debt will be completed
Guardian Tax Relief's Role
This is not common practice for the IRS to settle with taxpayers. The approval rate is very low and this is a very regulated option. Having qualified tax professionals on your side could dramatically increase your chances at getting an Offer In Compromise approved.
Reasons a tax debt would be compromised include:
- Doubt as to Liability:
Doubt that the assessed tax is accurate. - Doubt as to Collectability:
There is doubt that the taxpayer could ever pay the full amount of tax owed. - Effective Tax Administration:
No doubt that the tax is accurate and could possibly be collected but an external circumstance exists where the IRS will consider a taxpayer’s OIC.
To qualify for this option, you will have to show that paying off your tax debt will result in financial hardship.
Guardian Tax Relief has experience and knowledge in successfully negotiating OIC’s with the IRS. Our Tax Professionals will prepare, submit and settle your OIC case if you qualify.
We will help protect your financial future!
Free Consultation
Receive an initial analysis of your specific tax issues with one of our tax professionals.
Investigation
With your authorization, we obtain your IRS transcript for past personal filings.
Preparation
We review and amend your past and current tax filings to be in compliance with IRS standards.
Financial Analysis
We provide a comprehensive assessment of your tax debt issues with recommendations to attain relief.
Case Resolution
We negotiate with the IRS to reach a favorable resolution.
Contact Us today To Get Relief
Offer in Compromise (OIC)
This program is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed. This is only available in limited circumstances for taxpayers who have exhausted all other relief options. This can be the ideal tax relief solution for those looking to resolve their tax problem as it can result in significant savings. This is a less than common tax solution and is only given if the IRS agrees to a settle.How Does It Work?
The IRS and the taxpayer will acknowledge that the tax debt can not be fully recuperated by a feasible means. This mean that the taxpayer is unable to make payments to the IRS due to lack of income but also lack of valuable assets for the IRS to seize.- You will then make the best possible offer to settle your debts with the IRS in the form of an amount that you can afford even if it falls short of the actual balance
- The IRS will then accept this amount offered and agree to reduce your tax debt to match the amount you can pay.
- Once you have paid the agreed upon amount, the debt will be deemed “paid in full” and that debt will be completed
Guardian Tax Relief’s Role
This is not common practice for the IRS to settle with taxpayers. The approval rate is very low and this is a very regulated option. Having qualified tax professionals on your side could dramatically increase your chances at getting an Offer In Compromise approved.Reasons a tax debt would be compromised include:
- Doubt as to Liability: Doubt that the assessed tax is accurate.
- Doubt as to Collectability: There is doubt that the taxpayer could ever pay the full amount of tax owed.
- Effective Tax Administration: No doubt that the tax is accurate and could possibly be collected but an external circumstance exists where the IRS will consider a taxpayer’s OIC.