The process of submitting an Offer in Compromise (OIC) and obtaining IRS acceptance is complicated. Success requires substantial attention to detail, and compliance with a variety of IRS regulations, procedures and guidelines. Your attorney should have the knowledge, experience and judgment to guide you through the process to ensure the best chance of approval of your OIC by the IRS. With my years of legal experience, I will help you navigate this minefield to achieve the best possible result for you.
An OIC is an out of court agreement between a taxpayer and the IRS that resolves the taxpayer's tax liability for less than the full amount owed. Taxing authorities have the power to settle, or compromise, tax liabilities by accepting less than full payment under certain circumstances. You can pursue an OIC for any type of tax deficiency, including income tax and payroll tax deficiencies.
What are the circumstances under which the IRS may accept less than the full amount?
Effective Tax Administration – There is no doubt the tax is correct and no doubt the amount owed could be collected, but an exceptional circumstance exists that allows them to consider the taxpayer's offer. To be eligible for compromise on this basis, you must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
The most common reason for the IRS to accept an OIC is doubt as to collectability. Often times, taxpayers file an OIC after a bankruptcy discharge to settle non-dischargeable tax debt. However, it is important to keep in mind that making an OIC before filing for bankruptcy or when bankruptcy is not being contemplated will have an effect on the dischargeability of taxes if and when bankruptcy is filed. An experienced attorney who understands the intricacies and effects of the OIC process is a must.
For taxpayers that qualify, an Offer in Compromise is an excellent way to resolve a tax problem and get a fresh start with the IRS. However, the decision to make an Offer in Compromise is a complicated one, made all the more burdensome by the volume of paperwork involved. You can rely on the skill and guidance of Moretsky Law to see you through this difficult time and get the best possible result for you. I have over 10 years of legal experience helping individuals and businesses defeat debt.
Call 215-344-8343 or contact me by e-mail to arrange your free consultation with a Philadelphia IRS offer in compromise attorney.