If you owe more to the IRS than you can realistically afford to pay, an Offer in Compromise may provide a path toward resolving your tax debt for less than the full amount owed. However, qualifying for an Offer in Compromise is not as simple as submitting an offer and asking the IRS to accept a lower amount.
At Fair Tax Solutions, we help individuals and business owners understand whether an Offer in Compromise may be appropriate for their circumstances and how it compares with other available tax resolution services.
Based in Georgia and serving taxpayers nationwide, Fair Tax Solutions takes a detailed approach to IRS tax debt. Before recommending an Offer in Compromise, we look at the complete financial picture and determine whether pursuing an OIC makes sense based on the taxpayer’s circumstances.
An Offer in Compromise, often abbreviated as OIC, is an IRS program that allows qualifying taxpayers to settle a federal tax liability for an agreed-upon amount that is less than the full balance owed.
The IRS considers factors including your income, necessary living expenses, assets, equity, and overall ability to pay. This is why an Offer in Compromise should be approached as a financial analysis rather than simply a settlement request.
A taxpayer who has the ability to fully pay the liability through available assets, income, or another payment arrangement may not qualify for an OIC. For some people, an IRS installment agreement or another resolution strategy may be more appropriate.
Fair Tax Solutions evaluates the available options before determining which direction gives the taxpayer the strongest path forward.
Every case is different. The amount of tax debt you owe alone does not determine whether you qualify.
The IRS looks closely at your ability to pay, income, allowable expenses, asset equity, filing compliance, and other financial information. Taxpayers generally need to have required tax returns filed and remain current with applicable tax obligations before the IRS will consider an Offer in Compromise.
This is especially important for taxpayers who also have delinquent tax filings. Before pursuing a settlement, the underlying compliance issues may need to be addressed.
Fair Tax Solutions helps evaluate these factors before an offer is submitted. Taking the time to understand the case first can help avoid pursuing a resolution option that does not realistically fit the taxpayer’s financial circumstances.
An Offer in Compromise is only one possible way to resolve IRS debt.
Depending on your financial situation, other options may include installment agreements, penalty relief, Currently Not Collectible status, or another form of IRS resolution. Fair Tax Solutions provides a broader look at these choices through our IRS tax resolution services and our guide to IRS negotiation options.
For taxpayers whose balance has grown because of IRS penalties, it may also be appropriate to evaluate whether penalty abatement could play a role in the overall resolution strategy.
The objective is not simply to apply for the most heavily advertised IRS program. It is to identify the resolution method that makes the most sense based on the actual numbers.
Fair Tax Solutions is based in Georgia and assists taxpayers throughout Marietta, Atlanta, Woodstock, Kennesaw, Smyrna, Roswell, Alpharetta, Sandy Springs and surrounding communities.
Our work is not limited to Georgia. Fair Tax Solutions provides nationwide tax resolution services to individuals and businesses throughout all 50 states.
Many IRS tax matters can be addressed remotely, allowing our team to review financial information, prepare a resolution strategy, and assist taxpayers regardless of where they are located.
If you owe significant back taxes and are wondering whether you can settle IRS tax debt for less than you owe, the first step is determining whether an Offer in Compromise actually fits your financial situation.
Fair Tax Solutions can review your circumstances, identify the IRS resolution options that may be available, and help you determine a practical way forward.
Speak with Fair Tax Solutions and take the first step toward addressing your IRS tax debt.
