Filing an IRS Offer in Compromise - Contact The Law Offices of Nick Nemeth
  • August 19, 2019
  • admin
  • 0

Nobody can escape taxes, but what if you are broke and can’t pay the whole amount? To deal with such situations, the IRS provides you with the option of requesting an Offer in Compromise (OIC) that allows taxpayers to dissolve their tax liability for an amount lower than the actual amount owed to the IRS. To request an OIC, applicants need to fill either Form 433-A (for individuals), 433-B (for businesses), or Form 656(s) (for corporation, LLC, and partnership). However, there are certain things you need to know when filing an IRS Offers in Compromise, which we will present in this blog post. Read on.

Note Down the Filing Date

It is important to remember the date on which you file the application. That is because the IRS is under obligation to get back to you within 2 years with an outcome on your OIC application, either rejecting, returning or withdrawing it; else, it is considered as accepted. Make sure you note down the date as the procedure can be quite lengthy.

Choose a Payment Option

There are two options to choose from and your initial payment will vary based on the payment option you choose:

  1. Lump Sum Cash – Under this arrangement, you will have to pay 20 percent of the total offer amount with your application, and if the offer get accepted, then you need to pay the remaining balance in five or fewer monthly payments.
  2. Periodic Payment – Under this arrangement, you will have to choose your monthly installment, keeping in mind your finances. The monthly installment you choose excludes the expenses of your basic needs such as food and house rent. Calculate the amount after considering all your necessary expenses.

Don’t Pledge More Than You Can Afford

You are the best judge of your financial situation. Whichever option you choose, either lump sum cash or periodic payment, make sure you do not pledge more than you can afford. You have to pay a lump sum to the IRS within 5 months of the date the IRS approves it, so find an amount you can afford and don’t pledge for more than you afford. Remember the lump sum you pay to the IRS  is non-refundable in case your application got denied or you fall behind in your payments. In case of periodic payment, find an amount you can pay easily excluding all your necessary expenses as your monthly installment.

Need Professional Help? Consult an IRS Tax Lawyer

When requesting an OIC, it is always advisable to have an IRS tax lawyer to guide the way. IRS tax lawyers provide you the best advice based on the dynamics of your case.  An IRS tax lawyer understands the complex process and will make sure that all your information that is needed to file an OIC is done properly. If you are looking for professional help, look no further than the Law Offices of Nick Nemeth. For a no obligation consultation, fill our contact form or simply call (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