Offer in Compromise
Are You Eligible for Offer in Compromise (OIC)?
- Your tax liabilities are over and above your payment capacity.
- Your current situation does not allow you to pay off the tax liability you owe the IRS.
- Together with penalties, the total payout for you will become a burden you will be unable to bear.
If any of the above sounds familiar, you should consider an Offer in Compromise provided by the IRS to those who are genuinely unable to pay off their tax liabilities.
An Offer in Compromise is one of the ways in which you can settle your tax debt for less than what is actually owed. The entire process may take around 24 months.
However, this does not make everyone with a tax debt burden or an outstanding tax liability eligible to apply for an Offer in Compromise, or be granted one. The IRS is stringent about Offers in Compromise and approvals are issued only when presented with undisputable and documented proof of the inability to pay.
One of the foremost things to do when considering an IRS Offer in Compromise is to ensure eligibility. This takes center-stage because less than 20% of all requests for the Offer in Compromise are approved by the IRS.
Take a look at why this happens:
- The Offer in Compromise is submitted without being adequately eligible for settlement of tax debt.
- Those making the applications do not understand the Doubt as to Collectability clause available and thus are unable to present an offer forceful enough to merit acceptance in the clause.
- The application is not made in a manner that is compelling enough and is thus rejected immediately, even if eligibility is there.
- The IRS doesn’t have adequate reasons to believe that the taxpayer actually needs the relief requested for.
It is worth keeping in mind that officials of the IRS are actually looking for a reason to decline the request.
As a result, to increase chances of being accepted, an Offer in Compromise must be submitted by a professional by way of a letter and an offer of settlement on the taxpayer’s behalf.
This is not to say one cannot make an offer without representation. But, listed below are some factors to take into consideration when you choose to make offers without representation by a professional:
- The IRS may feel you can pay the tax liability through a payment plan, thus rejecting your request.
- Your collection potential does not indicate the need for an Offer in Compromise.
- Your request might get misunderstood as an effort at buying more time instead of being a genuine appeal for help.
Increase Your Chances of Gaining Approval
The simple act of making your offer through professionals can reduce a negative result. It not only cuts down on incorrect appeals, but because you are armed with knowledge and information through a professional by your side, you stand a higher chance to win.
The team of professionals at YLRA have been representing customers with tax liability debt successfully for years.
Represent a Stronger Case
From reviewing your tax liability to determining eligibility, we put our professionalism right where it works: on your case and on making it a strong contender for the Offer in Compromise.
At YLRA, we help you negotiate and present your case with the IRS through a thorough understanding of your eligibility. We have a high success rate because we pursue eligibility foremost before even looking at possible settlement routes for the case at hand.
- Step 1: Reviewing Your Eligibility
Your eligibility is reviewed thoroughly. This means unearthing every detail that can be of help while eliminating any information that might result in efforts going futile. Details of tax returns filed in the past, proof of legally filed returns, etc.
- Step 2: Analyzing How to Represent Your Case
Analyzing the possible ways in which your particular case may be presented for an Offer in Compromise. This includes thinking through the documents that need to be presented, tax returns paid out and proof for these, etc.
- Step 3: Outline Plan of Action
Outlining a plan of action is the next step. Gathering proof in the form of records of past tax payments, audit records, and records of your inability to pay the liability in full, hence the appeal for an Offer in Compromise are gathered.
- Step 4: Taking Action; Making the Offer
The next step in the process is filling in the requisite forms and presenting or making the request to the IRS.
There is no one-shoe-fits-all formula; every individual who comes to us is assisted by keeping in mind their unique requirement. To know more, call us on (855) 254-7841, for a free consultation.