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IRS Offer in Compromise – Hope When You Can’t Pay.

If you’ve fallen behind on your taxes and can’t pay, the IRS may be willing to settle for lass than you owe.

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What is an Offer in Compromise?

An Offer in Compromise (OIC) is a settlement agreement between you and the IRS that allows you to settle your debt for far less than you owe. It’s about as close as you can come to tax debt forgiveness. Although it may sound too good to be true, it is a legitimate tax relief option for those who qualify.

To make an Offer in Compromise request, you must submit a $205 application fee (non-refundable), Form 433-A (OIC) or Form 433-B (OIC), Form 656, and the initial payment (non-refundable). The initial payment will depend on the amount of your offer and the payment option you choose.

Getting approval for an Offer in Compromise is never guaranteed, but the IRS must give properly submitted requests fair consideration.


Offer in Compromise Qualifications

The IRS has strict qualifiers to determine who is eligible for tax forgiveness. The first thing they consider is your reason for applying. The IRS will only consider OIC if one of the following is true:

  • The IRS may have incorrectly determined the amount you owe
  • The tax debt is not fully collectible (your assets/income are less than the amount due)
  • Paying the tax debt would cause undue financial hardship (effective tax administration)

In addition, the following requirements must also be met before your Offer in Compromise is considered:

  • You’re up-to-date on all tax returns
  • You include an IRS bill for at least one tax debt in your offer
  • You’re not delinquent on any estimated tax payments for the current tax year (if applicable)
  • You don’t have an innocent spouse claim open with the IRS
  • The IRS is not currently auditing you
  • Your case hasn’t been sent to the Department of Justice
  • You’re not currently in bankruptcy proceedings
  • Business owners with employees also need to make all required federal tax deposits for the present quarter

If you meet the above qualifications for an Offer in Compromise or want to discuss other tax relief options, give Tax Defense Network a call. We can help you avoid costly mistakes, and find the best solutions for your tax problems.

“We reviewed a lot of other companies out there and Tax Defense Network seemed to have the best reputation and feedback from their clients, so we just took the chance. It was a good choice. They got feedback to me very quickly and answered all my questions. They were very accommodating and understanding. If I had tried to do it alone, I would never have been able to negotiate with the IRS. It’s certainly better than hiding in the shadows because I’m afraid of something happening. They cleared the way for me to plan better and pay my taxes.”
— Alfredo T.

Common Questions About Offer in Compromise

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