OFFER IN COMPROMISE

You've got tax troubles. BIG tax troubles. You lie awake nights worrying about what's going to happen. You haven't taken action because it all seems too big to handle. Every day you hide under the covers your tax debt just grows with penalties and interest. But there is a way out of this mess. You may qualify for an "offer in compromise" (OIC). This is an amazing tool to help you get a fresh start. But you want to make sure that you have someone in your corner who can give you the best chance possible of settling your tax debt once and for all. Even if you don't qualify for an offer in compromise there are some other programs available. You have rights and options. Take a deep breath and take that first step.

What the heck is an offer in compromise (OIC) anyway? This is an agreement that means the IRS accepts less than the amount you owe. In some instances this amount is a lot less. They base this number on a complicated formula that ultimately comes down to how much they think they can reasonably collect from you before the statute of limitations expires. You may qualify if there is doubt as to your liability. This means that you dispute whether you legally owe the amount they say you do. You also may qualify if there is doubt as to the whether they can actually collect the tax debt. They will look at a lot of different factors including whether paying the full amount would cause you an economic hardship. It's a great idea to read IRS form 656 in order to see what situations qualify for an OIC. You can find this on the IRS website.

While you are not alone in your tax troubles, your situation is unique. The IRS will look at the specifics of your situation. To evaluate your offer in compromise they are going to open up your finances and inspect everything. They'll look at your income, expenses and assets. They'll determine whether your expenses are necessary or not. They'll figure out the quick sale value of your assets, including your retirement accounts. They'll decide how much they can take from your future income. It is up to you to provide them with all this information. They won't come in and force you to sell everything you own and live in a cardboard box. A lot of your personal effects are safe. They are looking for luxuries and unnecessary expenses. Take a look at IRS form 594 to get an idea of what they are looking for.

You can see that this miracle cure is actually a lot of work. This is a highly complex procedure with a lot of moving parts. It can also take a long time, even up to two years. One false move means that your application is returned and won't go on to final review. You don't want to waste all that time and effort. You want someone on your side who knows all the ins and outs of the process. Once you find an expert find out about her track record and credentials. Is she a tax attorney or a CPA? Is she going to be doing the actual work on your case? Ask if she's going to do all the follow up work. Your offer in compromise is complicated and you want an expert who is up to the job.
It's time to sleep better at night knowing that your tax debt is behind you. First you've got to take that step to find an expert who can help you. If you qualify for an offer in compromise this can be the saving grace you've been praying for. But it's not easy and you shouldn't try to do it alone. Find someone who is experienced at successfully negotiating with the IRS to handle your offer in compromise. You'll be glad you did.