Tax Relief with Nick Nemeth
  • November 20, 2017
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An Offer in compromise (OIC) is a type of tax relief provided under IRS’s ‘Fresh Start Initiative’ that enables qualified taxpayers to pay off their debts for an amount less than the outstanding amount. OIC gives taxpayers, going through financial hardships, an opportunity to start afresh. However, before requesting one, it is important to learn a thing or two about OIC eligibility and documents requirement as it will help you take your first step in the right direction. To help, in the post we have answered some of the commonly asked questions about OIC. Read on.

1. How do I know if I qualify for OIC?

In order to identify whether you qualify for OIC, you can either use OIC pre-qualifier tool on or consult an experienced IRS attorney, such as Nick Nemeth. If you fall into a low-income taxpayers category, your gross monthly income should be less than or equal to the income mentioned in section 1 of Form 656. Also, whether or not you qualify for the relief will depend on the size of your family and your current address.

2. How do I know whether I have made the right offer?

If you think you have not calculated your offer right or you think your offer is not high enough, the IRS is there to help you. The IRS will give you the correct offer amount. In case the amount calculated is more than the amount offered you, the IRS gives you a chance to increase the amount, or the offer gets rejected. That said, when submitting an OIC make sure there you are not providing any false information. Any false information or statement made in front of the IRS is considered a fraud and is subjected to severe penalties.

3. Can I add my current year balance in the offer at hand?

Well, once your offer is accepted, you cannot add additional tax balance to the offer. In fact, the current balance must be paid in full otherwise your offer will default. Also, installment agreements cannot be made on new balances.

4. What happens if I fail to pay?

In case of failure to pay, the IRS will either file a suit or levy to compensate for the amount mentioned in the offer or for the entire amount you owed to the government while deducting the amount already received under OIC. In case of joint OIC with your spouse, the IRS will not default the agreement unless one of the spouses is meeting all terms of the agreement.

5. How much interest do I pay if my OIC is accepted?

The IRS charges an interest on the tax amount until the OIC is accepted. The day OIC is accepted, there is no additional interest added to the owed amount or accepted amount for OIC.

Wrap Up

Requesting an OIC is a complex process and can be a hassle if you do not possess some basic understanding of its terms and conditions. Also, to avoid any errors in the application, it is important to seek assistance of an experienced IRS lawyer who can guide you in the right direction. If you think you qualify for the tax relief, speak with Nick Nemeth. Nick Nemeth is an experienced tax attorney who has helped many individuals and business with diverse IRS tax issues. To schedule a free, no-obligation consultation simply call (972) 426-2553.

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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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