Getting your Offer in Compromise accepted

The question that is troubling most people is whether their Offer in compromise is likely to be accepted by the IRS. Get assistance from Nationwide Tax Group who can advise you and offer you the best possible settlement. 

Is my Offer in Compromise likely to be accepted?

Nationwide Tax Group will help you determine your eligibility for filing the offer of compromise as your offer can only be accepted if you are unable to pay back your tax liabilities in a lump sum amount or through an installment agreement. If you have the ability and the assets to pay back your debts then your application for the offer in compromise will not be accepted.

You also need to note that by filing for an IRS offer in compromise, you are actually offering to pay less than the full amount of your tax debts to the Internal Revenue Service. The IRS is only ready to accept less payment on your tax liability if they are in doubt as to whether the IRS will ever collect the full amount. Submitting to the offer uncompromised is a good way to get out of your tax debt but it is not always the best option for you as there are many conditions that apply to filing an offer in compromise.

The key to a successful acceptance for the Offer in compromise is to make sure that the IRS can process your application without delay and to submit back up documentation to support your offer. Make sure they have everything they need to consider your offer and it increases the chances that everything comes out fine.

The process of submitting an offer in compromise and having it accepted by the IRS is complicated. Success requires great attention to detail, and you need to follow a series of regulations from the IRS, procedures and guidelines. The IRS has the authority to settle or compromise federal tax liabilities by accepting less than the full amount of the offer in compromise program. One of the following three circumstances will be considered during the offer in compromise review process:

1. The inability of taxpayers to pay tax debt in full. This is the most common type of offer in compromise (OIC). With this type of OIC, a taxpayer makes a declaration that the taxpayer's financial situation, based IRS national standards, is in a position where the IRS cannot collect the total tax due from the taxpayer.

2. Verified presence of a tax liability. The taxpayer must demonstrate that the amount of tax or penalty that is charged by the IRS is incorrect. The Offer in Compromise is normally used if the taxpayer cannot defend themselves against an assessment by the IRS, and has now further evidence that the charged tax liability is found to be wrong.

3. Effective tax administration. This type of offer requires the taxpayer to prove that an exceptional situation exists and that the demand for payment of the tax debt in full would be an unreasonable economic situation or that it demonstrates an unfair or unjust circumstance.

Successful Offer in Compromise

A successful Offer in Compromise allows taxpayers to stay out of bankruptcy and also lower the taxes that were not dismissed in bankruptcy.  There are also negative aspects of the offer in compromise process. The main negative characteristics to an OIC are that the taxpayer must make a full disclosure report for the government; Certain tax benefits do not apply if the OIC is accepted;  A federal OIC does not resolve the state taxes or other debts.

Acceptance of an IRS offer in compromise requires a taxpayer to be up to date on all tax obligations for a period of five (5) years after compilation.

To learn more about IRS tax settlements, contact Nationwide Tax Group and we will provide you with the information you need to know to make a decision about whether or not to proceed with an Offer in Compromise.