Settlement

When a taxpayer and the IRS negotiate to settle a perceived tax liability an “Offer in Compromise” may be made through a program available to delinquent taxpayers to “provide them with a fresh start toward future compliance with tax laws.” In essence this is an agreement between the IRS and the taxpayer to settle a tax liability for payment of less than the full amount that is owed. According to documentation last published by the IRS, settlement was on average 88% less or twelve cents on the dollar of the tax liability owed through the OIC program. Not great numbers for the government but, very good news for the taxpayer who qualifies.

This new program initiated by the IRS in 1992 under the tax code Section 7122 is an area of the tax code that requires OIC expertise, at TaxRelief.net our OIC division is staffed with and is coordinated and negotiated by our tax attorneys and tax specialists in the field of OIC, (Offer in Compromise) this division was designed to handle OIC cases specifically.

Grounds for consideration of an OIC are specific:
1. Doubt as to liability
2. Doubt as to collect-ability
3. Effective tax administration

The IRS sets specific guidelines based on a taxpayer’s personal profile financially which includes; income, expenses, assets, and available equity in owned assets. There are also additional benefits in filing an OIC, in that it can provide a delinquent taxpayer additional time before actually having to resolve their tax liability and prohibits the IRS from taking any other punitive actions during the OIC process, even if the OIC is not accepted by the IRS. There are specialists here at TaxRelief.net waiting to answer your questions with a free OIC consultation call us at