IRS offer in compromise with Nick Nemeth
  • December 13, 2017
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IRS offer in compromise is  a great opportunity for taxpayers to start afresh as it helps them get rid of their tax debt. The idea is to give taxpayers some sort of relief if they owe any taxes, interests or penalties that they cannot pay off because of lack of income or assets. However, when applying to the IRS for an Offer In Compromise (OIC) you got to avoid some pitfalls that might lead to rejection. Having said that, in this blog post we discuss 7 IRS Offer In Compromise tips that you must follow to avoid rejection.

1. Do not hide your assets

The IRS has a variety of tools to verify whether the information provided by a taxpayer on Form 433-A is accurate or not. Make sure you do not give any wrong information or hide any income or assets when filing for an OIC, because if the IRS finds that out it will not only reject your application, but it might also file a case of perjury against you.

2. Regularly file your tax returns

One of the conditions of acceptance by IRS is the taxpayer needs to file tax return regularly for the next five years. If a taxpayer fails to file the tax return during the next five years, IRS can revoke the Offer In Compromise and reinstate the tax debt that a taxpayer owes.

3. Clear your debts when IOC is pending

Another important point that to remember is to clear all debts when the OIC process is pending. Taxpayers need to wait for approximately six months to one year for the IRS to process their request. During this period of time, avoid inflating tax bills, which is also known as pyramiding.

4. Check your eligibility before applying

Before applying for OIC, check whether you are eligible for one in order to avoid disappointment in future. Get all the information about current and filing requirements. Taxpayers with any open bankruptcy, too much equity, or any other disposable assets are not eligible for OIC.

5. Spend with care

The IRS reviews bank statements in order to verify the income of a taxpayer. If the IRS notices any frivolous spending, it might assume the taxpayer has undisclosed income and reject your OIC application.

6. Pay on time

A taxpayer needs to pay the offer amount only after the OIC application has been accepted. Depending on the conditions mentioned in the Offer In Compromise, a taxpayer may be required to pay the offer in installments or full.  Make sure you do not default on your payments.

7. Seek professional help

Using the DIY approach to apply for OIC is not a good idea. The IRS tries its best to make you pay for the tax debt. If they find out that you can pay off the tax debt using your property, the IRS will force you to sell your property or other assets in your name. To avoid such problems take the help of a professional.

Last Few Words

Those were some of the essential tips that you need to consider when applying for Offer In Compromise. Following the tips will increase the chances of getting an approval for OIC and also help you avoid any roadblocks.  If you are looking for professional assistance to increase your chances of getting an OIC, look no further than The Law Offices of Nick Nemeth. To schedule a free, no-obligation consultation with one of our experts, simply call (972) 426-2553 or visit our website at

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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!
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