What Is An Offer In Compromise?
The Offer in Compromise (OIC) is a demanding tax resolution option renowned for its rigorous eligibility criteria. Despite being a prominent option under the Fresh Start Program, meeting its requirements is highly challenging.
The IRS only accepts OIC applications from taxpayers who cannot afford to pay their entire federal tax debt. Qualifying for an OIC necessitates presenting compelling evidence of significant financial hardship.
Effective negotiation, often facilitated by services like TaxRise, can substantially decrease the taxpayer’s liability, sometimes by more than 90%.
Qualifying For An Offer in Compromise (OIC)
IRS compliance hinges on your current tax filing status. If you have outstanding tax returns that haven’t been filed, you are considered non-compliant with the IRS. This non-compliance makes you ineligible for an Offer in Compromise, as well as other relief programs under the IRS Fresh Start Initiative.
Once you have filed all necessary tax returns, you can proceed by submitting IRS Form 9465 to request an Offer in Compromise.
Rejected Offer In Compromise (OIC)
While completing IRS Form 9465 is straightforward, the IRS frequently rejects Offers in Compromise (OIC) requests.
It’s recommended to pursue an OIC after constructing a compelling case that highlights financial hardship and an inability to pay off your tax debt.
There is no fixed minimum tax liability required to qualify for an OIC. Eligibility for this resolution option depends on each taxpayer’s unique financial situation and tax liability.
Can I Qualify On My Own?
While it’s not obligatory, seeking professional assistance when submitting an Offer in Compromise is highly recommended. This resolution process is notably complex and typically requires extensive tax expertise. Representing oneself in an OIC case can be compared to facing a prosecutor without legal counsel.
The IRS employs all available resources and strategies to disqualify OIC submissions. IRS examiners meticulously review submissions and promptly reject those containing even minor errors. Often, taxpayers lack familiarity with the required terminology and financial documentation, which can lead to rejection.
Moreover, if the IRS declines a taxpayer’s OIC submission, it significantly reduces their chances of successfully resolving their tax liability in subsequent attempts.
Ready to resolve your tax issue?
In just a few minutes you’ll be matched with a real professional with a proven track record.