• September 24, 2018
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If financial constraints have been preventing you from settling your tax liabilities, an Offer in Compromise can be a way out of the problem. An Offer in Compromise is an agreement between a taxpayer and the IRS, allowing for a settlement of debt for an amount less than the actual debt. If a taxpayer is financially capable of paying their debt in full, they are not eligible to file an OIC. It is also important to know that there is no legal right to get a waiver on your tax liabilities, and that it is at the sole discretion of the IRS. Continuing on the subject, this blog covers all you need to know about the Offer in Compromise. Let’s take a look.

Eligibility Criteria for Filing an IRS Offer in Compromise

Although everyone would like to have their tax liabilities reduced, before you apply, it is important to check whether you qualify for an OIC settlement. The IRS has certain qualification criteria that taxpayers need to fulfill to qualify for an OIC. To qualify for OIC, you need to show evidence to the IRS that you fall under one of the following conditions:

  • Doubt about collectibility – When a taxpayer agrees to owe the taxes but shows an inability to pay the tax debt in full, they may file for an OIC.
  • Effective tax administration – If a taxpayer is facing financial hardships to settle their debts, they can file OIC under Effective Tax Administration head.

The Process of Filing OIC

Applying for an OIC with the IRS is a formal process that a taxpayer needs to follow to get approval for this type of settlement. As a part of  this settlement, taxpayers need to fill out Form 656 and pay the required application fee. Along with the application form and fee, they need to provide their financial proofs including vehicle registrations, bank records, and other documentation using the Form 433-A (Individuals) or Form 443-B (Businesses).

Must Read: 7 IRS Offer In Compromise Tips You Must Follow to Avoid Rejection

Want to Settle Your IRS Tax Debt? Help is Here!

If you are planning to apply for an IRS Offer in Compromise, it is advisable to seek the help of an IRS tax attorney for professional assistance. Hiring a tax attorney helps minimize the chances of OIC application getting rejected as legal experts are aware of the intricacies involved. If you are looking for an experienced tax attorney, look no further than the Law Offices of Nick Nemeth. We have a team of experienced IRS tax attorneys specialized in handling all sorts of IRS tax-related issues. To schedule a consultation with our experienced attorneys, simply call (972) 426-2553, or fill out our contact form and we will get back with you, shortly.

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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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