Offer in Compromise

Offer in Compromise

You can settle your IRS or State tax debt for a small fraction of what you owe. The Offer in Compromise (OIC) program is for those taxpayers who cannot afford to pay their IRS tax debt because of financial hardship, or have a legal claim and don’t think they owe the tax amount due.

  1. Offer in Compromise – Financial Hardship

This is the most common way to settle your taxes. Under this program, we can settle your IRS/State tax debt for a fraction of what you owe. They use income/expenses and asset/equity ratios to determine the settlement amount, based on standards set for taxpayers’ average cost of living, according to their family size and location.

 

  1. Offer in Compromise – Legal Claim

This program is when you are in doubt as to having the liability. We can offset a tax liability if the tax is not legally owed by the taxpayer. The IRS may have erroneously assessed a tax because of mistake or lack of evidence. Upon proof from our legal department, IRS/State will terminate the tax liability.

 

  1. Offer in Compromise – Exceptional Circumstances

Exceptional circumstances can persuade the IRS/State to accept an OIC because the collections of the tax are unfair and inequitable.