Expert Tax Attorney Offer in Compromise Services
Introduction to IRS Offer in Compromise
The IRS Offer in Compromise (OIC) is a powerful solution for taxpayers facing overwhelming federal tax debt. This program allows individuals and businesses to settle their tax liability for less than the full amount owed, especially when paying the entire balance would cause significant financial hardship or economic hardship.
The IRS considers several factors when determining eligibility for an offer in compromise, including the taxpayer’s ability to pay, income, expenses, and asset equity. By submitting an OIC, taxpayers can potentially reduce their tax debt for less, avoid aggressive collection activities such as a federal tax lien, and gain relief from the stress of mounting tax liabilities.
The offer in compromise oic program is designed to provide a fresh start for those who qualify, giving them a realistic path to resolve their tax issues and move forward.
Professional IRS Offer in Compromise Representation
Settle your IRS tax debt for less than the full amount you owe through the federal Offer in Compromise program.
While the Internal Revenue Service accepts only 24% of all offer in compromise applications nationally, experienced tax attorneys achieve 90%+ success rates through proper preparation and strategic representation. An offer in compromise (OIC) (also known as an IRS OIC, the IRS’s official program for settling tax debt) allows qualified taxpayers to resolve their tax liability for a fraction of the total tax debt the taxpayer owes when paying the full tax liability would create financial hardship.
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Why You Need an Expert Tax Attorney for Your Offer in Compromise
Professional tax attorney representation dramatically increases your chances of IRS acceptance and protects you from costly mistakes that lead to automatic denial.
Higher Success Rate: Tax attorneys achieve 90%+ approval rates versus the 24% overall acceptance rate for self-prepared applications.
Proper RCP Calculation: Attorneys accurately calculate your Reasonable Collection Potential by thoroughly assessing the taxpayer’s ability to pay, including a review of income, expenses, and asset equity, to avoid automatic rejection.
Complex Documentation: Professional preparation of Form 656-B and required financial disclosure forms (433-A for individuals, 433-B for businesses) under penalty of perjury.
IRS Negotiation: Direct communication and negotiation with IRS revenue officers on your behalf throughout the 6-12 month evaluation period.
Strategic Planning: Comprehensive evaluation of all tax relief options including existing installment agreements, penalty abatement, and economic hardship provisions.
Protection from Errors: Avoiding common mistakes in filing and payment requirements that lead to automatic denial and forfeiture of non refundable payments.
Eligibility Requirements
To qualify for an IRS Offer in Compromise, taxpayers must meet strict eligibility requirements set by the IRS. First, you must be current with all filing and payment requirements, including making any required estimated payments for the current year. Taxpayers cannot have an open bankruptcy proceeding at the time of application.
The IRS will carefully review your financial situation, including your income, expenses, and asset equity, to determine if you are eligible for an offer in compromise. The IRS offer in compromise program is intended for those who truly cannot pay their full tax liability, and determining eligibility involves a thorough analysis of your ability to pay. To help assess your situation, the IRS provides a pre-qualifier tool that can guide you through the initial steps of determining if you may qualify for an OIC.
Our Expert Tax Attorney Offer in Compromise Services
Individual Taxpayer OIC Representation
Complete offer in compromise representation for individuals and families struggling with personal income tax debt. We analyze your monthly income minus allowable living expenses to determine your taxpayer’s ability to pay and calculate the optimal settlement amount the IRS considers acceptable.
Business Tax Debt Settlement
Specialized representation for corporate and small business tax debt, including payroll tax liabilities and employment tax issues. Our tax professionals evaluate your business’s financial circumstances and taxpayer’s equity in assets to structure offers the IRS accepts for business tax debt resolution.
Top 10 Tax Situations We Successfully Resolve with OIC
- Unemployment or Job Loss: Income reduction preventing ability to pay monthly installments on existing tax liability
- Medical Emergencies: Large medical bills creating financial hardship beyond allowable expenses calculations
- Business Failure: Failed business leaving substantial business tax debt with limited future income prospects
- Divorce Settlement: Tax debt from former spouse or property division affecting taxpayer’s income and asset equity
- Retirement with Fixed Income: Limited retirement account distributions preventing full tax liability payment over reasonable period
- Disability Benefits: Taxpayers living solely on disability payments below low income certification guidelines
- Student with Low Income: Recent graduates with entry-level salaries unable to pay remaining balance over collection period
- Single Parent Households: Supporting children on limited monthly income requiring effective tax administration relief
- Economic Hardship: Proven inability to maintain basic living expenses while paying required tax returns
- Asset Liquidation Issues: When liquidating taxpayer’s equity in assets would create undue hardship beyond actual spending needs
Benefits of the Offer in Compromise Program
The Offer in Compromise program offers significant benefits for taxpayers struggling with tax debt. By participating in the compromise program, you may be able to settle your tax debt for less than the full amount owed, providing much-needed relief from financial hardship.
One of the key advantages is the ability to stop collection activities, such as wage garnishments, bank levies, and federal tax liens, giving you peace of mind while your offer is under review.
Additionally, the offer in compromise program can help you avoid the accrual of further penalties and interest on your tax debt, and often allows for a faster resolution—typically within 6 to 12 months. For many individuals and businesses, an OIC represents a fresh start and a practical way to resolve tax debt for less, restoring financial stability and control.
Our Offer in Compromise Process
Step 1: Financial Analysis and Case Evaluation
Complete review of your total tax bill including penalties and interest across all required tax returns. We analyze your monthly income, allowable living expenses, and asset equity to determine reasonable collection potential and evaluate your eligibility for the compromise program.
Step 2: Documentation and Application Preparation
Professional preparation of Form 656-B offer in compromise application with complete financial disclosure forms. We gather supporting documentation for income expenses asset equity analysis and determine if you qualify for low income certification guidelines to waive the application fee.
Step 3: Strategic Offer Calculation
Calculate optimal settlement amount based on what the IRS believes it can collect over a reasonable period. We select the appropriate payment option – lump sum cash offer or periodic payment plan with five or fewer payments – and structure the initial payment required to maximize acceptance probability.
Step 4: IRS Submission and Negotiation
Professional submission of complete OIC package to the IRS with proper designate payments and required estimated payments current. We handle direct communication during the evaluation period, respond to IRS requests for additional information, and negotiate terms until you receive written confirmation of acceptance.
Calculating Allowable Living Expenses
When evaluating an Offer in Compromise, the IRS considers your allowable living expenses to determine your ability to pay. Allowable living expenses are calculated using national standards for essential costs such as food, clothing, housing, utilities, and transportation. While the IRS reviews your actual spending, expenses that exceed these national standards may not be allowed.
To accurately report your financial situation, you’ll use Form 433-A, which details your monthly income, mortgage or rent payments, utilities, and other necessary costs. The IRS also factors in your asset equity when determining eligibility and the amount you can reasonably pay. Understanding how the IRS considers allowable living expenses is crucial for preparing a strong OIC application and ensuring your offer reflects your true financial circumstances.
Payment Options and Living Expenses
If you qualify for an Offer in Compromise, you have several payment options to resolve your tax debt. The most common choices are a lump sum cash payment or a periodic payment plan. Typically, the IRS requires an initial payment—usually 20% of your offer amount—when you submit your application, with the remaining balance paid in five or fewer payments.
For taxpayers who meet the Low Income Certification guidelines, the initial payment and monthly installments may be waived during the evaluation period, easing the financial burden while your offer is under review. The IRS considers your income, expenses, and asset equity when determining the payment amount and terms, ensuring that your payment plan is manageable based on your financial situation. Whether you choose a lump sum or periodic payments, the right payment option can help you resolve your tax debt efficiently and affordably.
Client Success Stories
“After losing my job, I owed $85,000 in tax debt. The tax attorney settled my case for $12,000 through an offer in compromise based on economic hardship. The IRS automatically accepted the offer within 8 months.” – Sarah M., Former Marketing Manager
“Our small business failed, leaving us with $120,000 in payroll tax debt. The compromise attorney structured a lump sum settlement for $25,000, allowing us to avoid a federal tax lien and start fresh.” – Robert K., Former Business Owner
“As retirees on fixed income, we couldn’t pay the remaining balance of $45,000 from a previous tax issue. The offer in compromise program allowed us to settle for $8,500 in monthly installments.” – Margaret and James T., Retirees
Frequently Asked Questions About Our Expert Tax Attorney Services
What is the current IRS Offer in Compromise acceptance rate?
The IRS accepts approximately 24% of all offer in compromise applications nationally. However, tax attorneys achieve 90%+ success rates through proper legal assessment, accurate reasonable collection potential calculations, and strategic offer preparation. Professional representation is essential because the IRS evaluates each taxpayer submits based on strict financial criteria and any errors result in automatic denial.
How much should I offer to settle my tax debt?
Your offer amount must equal or exceed what the IRS believes it can collect from your future income and asset equity over a reasonable collection period. This requires calculating your monthly income minus allowable living expenses, plus liquidation value of assets. Offering too little results in automatic rejection, while offering too much defeats the purpose. A tax professional must analyze your specific financial circumstances to determine the legitimate option that IRS considers acceptable.
What happens if my Offer in Compromise is rejected?
If the IRS rejects your initial offer, you have appeal rights and can submit a revised proposal with additional documentation. Alternative solutions include requesting an existing installment agreement, penalty abatement, or currently not collectible status if you cannot pay your full tax liability. During an open bankruptcy proceeding, OIC applications are automatically suspended. Your compromise lawyer will evaluate all payment options to resolve your IRS debt through the most beneficial method.
Contact Our Tax Attorney Team
Get Your Free OIC Consultation Today
Stop collection activities and explore settling your tax debt for less than you owe. Our experienced tax attorney offer in compromise specialists will evaluate your case and determine if the offer in compromise program represents a legitimate option for your tax issues. Proudly located in Denver, Colorado and assisting clients nationwide!
Phone: (303) 482-2767
Book Appointment: https://dickmanntaxgroup.com/tax-help/
Address: 1001 Bannock St #480, Denver, CO 80204
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Schedule your consultation to receive a preliminary proposal and learn how we can help you achieve written confirmation of IRS debt settlement through the compromise program.