Offer in Compromise


An offer in compromise (OIC) is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. To qualify for an OIC, taxpayers must demonstrate that they are unable to pay their tax debt in full, either due to financial hardship or other exceptional circumstances. The IRS considers factors such as income, expenses, asset equity, and future earning potential when evaluating an OIC application. If accepted, taxpayers can settle their tax debt for a reduced amount and avoid more severe collection actions.

Your Path to Tax Relief and a Fresh Financial Start

When confronted with substantial tax debt, the idea of settling the entire amount can be overwhelming.

At Trusted Tax Advisor, we recognize the challenges and complexities linked to tax obligations. That's why we explore every avenue to find a viable solution for our clients.

One such avenue is an Offer in Compromise (OIC), a process that allows you to negotiate a reduced payment with the IRS. While the concept of settling for significantly less than what you owe may not always be realistic, an OIC can provide considerable relief. Our experienced team, located in Chester County, Pennsylvania, has successfully guided taxpayers across the country through the OIC process.

Navigating the Offer In Compromise Process

Achieving an OIC agreement with the IRS is no simple task. The IRS will only consider an OIC if they believe collecting the full amount is unlikely. Moreover, determining the appropriate payment amount can be complex. Strict formulas are employed to assess collectability, and submitting an offer that is too low will result in rejection.

At Trusted Tax Advisor, our knowledgeable team has the expertise to negotiate a fair and acceptable OIC. We understand the IRS's evaluation process and know how to position your case for the best possible outcome. Through meticulous preparation and a thorough examination of your financial details—such as income, assets, expenses, and liabilities—we craft a compelling offer that aligns with the IRS's criteria.

While an OIC may be a viable option, we understand that it may not suit everyone. Our attorneys conduct a comprehensive review of your financial situation and explore alternative tax resolution strategies. If there is a more suitable approach available, we will guide you accordingly.

A Fresh Start:

Securing an OIC agreement is just the beginning. After acceptance, certain obligations remain. In addition to making a lump-sum payment, you may be required to file and pay estimated taxes for the current year and the following five years. Compliance with these requirements is crucial to maintain the OIC's effect and have your original tax debt forgiven. Our attorneys will help you develop a comprehensive plan to fulfill these obligations and remain tax compliant.

If you're dealing with tax issues and wish to arrange a private, complimentary case evaluation, reach out to us now for a candid consultation on tax relief.

Call (305)488-4188 or click below to schedule a Tax Relief Strategy Session