Offer in Compromise
An Offer-In-Compromise (OIC) is a settlement with the IRS for less than the full amount owed on your taxes. OICs are not easy to get. We must provide the IRS with extensive financial information. We’ll fill out forms that report everything you own, everything you owe, all of your income, and your expenses. What’s more, you’ll need documentation to back up these numbers. For example, you would provide a tax assessor’s statement to prove the value of your home. You would provide a mortgage statement to show what’s owed on your home.
It usually takes the IRS 12 to 18 months to review all the information it requires from you. With a professionally prepared OIC, there’s a good chance your OIC will be accepted by the IRS. But, half of all OICs fail due to their not meeting all the complex requirements of the IRS.
With an OIC, you can make a lump sum offer, or your OIC can be made in payments. Call my office today for a more in-depth consultation rewarding OICs. Keep in mind that OICs are only one tool we use to lower your taxes. If an OIC won’t work for you, one of our other solutions could reduce your taxes.