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Offer in Compromise

Offer-in-Compromise

WHAT IS IRS OFFER IN COMPROMISE?

An Offer-in-Compromise is a form of tax resolution for those who really need help. On average, people who settle their debt using an Offer in Compromise end up paying less than 20% of the actual amount they owe to the IRS. For example, you can possibly turn a $150,000 tax debt into a $150 tax debt. At Protaxion, we specialize in OIC (Offers in Compromise).

OIC was approved by Congress to aid taxpayers and can be a solution for resolving your tax problem. An OIC is a type of out of court agreement between a taxpayer and the IRS designed to negotiate a resolution to the taxpayer’s liability and place collection efforts on hold. Keep in mind that the IRS has the power to compromise or settle federal tax liabilities by accepting less than full payment, provided the taxpayer can provide valid reasons.

Your financial situation may make it nearly impossible for you to pay off all your tax debt, even when making long term installment payments. In such situations, the IRS may be willing to accept an Offer-in-Compromise and significantly lower your tax bill.

HERE’S HOW AND OIC WORKS

  1. Both you and the IRS acknowledge that there is no feasible way to pay off all your tax debt.  
  2. You offer to pay the IRS the maximum amount that you can afford even though that amount may fall far short of the actual tax debt.
  3. If the IRS accepts that the amount you offer to pay is the most that it could reasonable expect to collect from you, it will agree to compromise and lower your tax debt to match the amount you can pay.
  4. Once you have finished paying the agreed upon amount, the tax debt is considered “paid in full.”  

GETTING HELP WITH OFFER IN COMPROMISE

The acceptance rate on OIC’s is fairly low due to errors or omissions on submissions. To have a better chance of approval, you should utilize professional assistance for this process. Protaxion’s highly qualified and experienced staff will work very hard to see if the OIC is the best solution for our IRS tax debt. Our professionals are experienced in preparing, submitting and settling these OIC cases. By calling our tax professionals you will get answers to any questions you may have and will gain a better assessment of your options.

At Protaxion we employ a number of strategies to structure IRS payment plans. Our team evaluates the transcripts of your tax account to understand what the IRS sees. Our experts will evaluate your personal economic circumstances to figure out what you can afford to pay as well as when and how you can facilitate the payments.  Next, we develop a tax resolution strategy designed to resolve the totality of your tax problem.  Protaxion then negotiates a settlement that satisfies the IRS guidelines and legal requirements.

Once both parties can live with the proposed solution, your tax problem will no longer exist. You can then pay the lowest amount allowed by law.

Do note that the process can take from three to six months from the time of submission. In some cases, it may take up to a year to complete. Once your proposal is accepted by the IRS, you have approximately five to twelve months to pay the settlement amount.

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Having a team of dedicated tax professionals on your side is a powerful position to be in when managing a tax matter with the IRS, and we look forward to helping to put you in a winning position to succeed.

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