Get an offer in compromise approved
  • January 23, 2017
  • admin
  • 0

Individuals that owe huge amounts in unpaid taxes that cannot pay turn to an “offer in compromise”. OIC is an agreement between the IRS and a taxpayer to settle the taxpayer’s tax liability for less than the owed amount. The IRS reviews the income and assets of the taxpayer and documents every detail of their financial situation, before deciding whether or not sanctioning of an OIC is a justified decision. Many applications submitted to the IRS are often rejected due to negligence on the taxpayer’s part. Most taxpayers are not familiar with how to get an offer in compromise, which increases chances of a rejection. We discuss the four tips that should guide your conduct to improve your chances of getting approval on your OIC application.

1. Don’t accumulate more tax debt

The usual waiting period for the IRS to process an OIC request is 6-12 months. If an applicant continues accumulate more debt, their chances of landing an approval are automatically lowered. Putting your tax payments on hold during the process of collection is a terrible idea. The applicant should make sure to pay quarterly estimated tax, instead of waiting for the determination on their OIC application.

2. Appeal an unfavourable decision

Many applicants don’t know that they can appeal an offer denial or how to go about the process. Even if you think IRS has given you a good offer, an appeal may be more financially beneficial, provided you know how to take it to the next level. The IRS accepts about a third of OICs, and the primary reason for such a low rate is the taxpayer’s lack of knowledge on the appeal program.

3. Don’t  withdraw your OIC Application

The offer in compromise examiner evaluates details provided by the applicant in the form and fixes a date for a meeting in the office. There are times when the examiner might suggest that the applicant opts for an IRS’ collection alternative, i.e. an installment agreement. Instead of accepting the alternative, try convincing the examiner to approve your application, and in the worst case scenario, file an appeal.

4. Don’t submit “junk” offers

The applicant needs to provide supporting documents for all the figures entered in the form to get OIC approval. Refrain from mentioning junk offers, for instance, a friend lending you money to pay taxes, as they have no documentation or support logic and increase chances of rejection. You will lose the mandatory 20 percent of the offer that you need to pay as deposit with the request. If you later submit a legitimate offer, you will have to pay another 20 percent.

Final Words

The IRS always makes decisions that are in the best interest of the government. This means you need to know the rules of the game well to win it. The safest way to reduce or eliminate chances of rejection is seeking expert legal advice. Law Offices of Nick Nemeth, PLLC is a dynamic team of caring professionals who work hard to take care of your IRS tax problems.  Nick Nemeth has years of experience in helping individuals and businesses resolve major tax issues. Call and schedule your free no-obligation consultation today to discuss the best tax settlement solution for your financial situation. To speak with Nick Nemeth personally and learn more on how we can help you resolve IRS troubles, fill out our contact form or call us at (972) 426-2553.

Please follow and like us:

What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
Quick Inquiry


    Enter the text you see above