What is an Internal Revenue Service Offer in Compromise and how does it work?
An OIC is a tax settlement between the Internal Revenue Service and a person or business to settle their liability for a certain amount. If accepted, it is the ultimate in tax relief. If accepted, you pay the IRS what you can afford to pay, not what you owe, unlike an Installment Agreement. We pride ourselves in arranging many such tax settlements.
There are two major grounds for an OIC Tax Settlement:
The first is Doubt as to Collectability. This means that there is doubt that the IRS will be able to collect the full amount that you owe.
The second is Doubt as to Liability. This means that there is a legitimate dispute as to whether the liability is owed.
Most IRS Settlements are based on Doubt as to Collectability.
Doubt as to Collectibility
The IRS settlement that you pay to the IRS is based on two things:
(1) How much your assets are worth, after deducting the loans against them; and
(2) How much your earnings are compared to your expenses.
In determining how much you can afford to pay, the IRS will want as much as they believe they can get from your earnings over a 4-5 year period, depending on whether it is a cash or deferred Offer.
There are two ways to fund a settlement. The first is Cash which is due within 90 days of the IRS accepting the offer. The second is a Short Term Deferred payment plan. This type of settlement is paid in installments over a two year period.
These are complicated complex matters. For the Government go give up its rights to collect money owed them, they must be convinced that you can't afford to pay the liability.
It is our job to work with you in a partnership to insure that we convince the IRS to accept your Offer in Compromise. We do this by vigorously representing you before the IRS in several ways:
Gathering together the Information necessary to submit your package
Preparing the necessary documentation to submit your package
Properly submitting the package at the best time and in the best location possible
Complying with all of the requests for additional information
Negotiating with the IRS to settle your matter for as little as possible
Appealing your case if it is rejected
Filing an action in Court in some circumstances to get the OIC accepted
This can be a long drawn out process. It often takes up to a full year for one to be processed. The IRS will look very carefully at the information provided in support settlement. They will request additional updated information, perhaps several times.
If you file an OIC, the IRS will not take steps to collect while it is pending. You can obtain a levy release once it is filed. You may be able to stop making payments on an installment agreement.
When we file your matter, we are in the process for the long haul. It will likely take a long time. But, we will vigorously fight for your rights and to get it accepted.
For a Free No Obligation Evaluation from our tax lawyers of whether you qualify for a settlement.
Settle for Pennies on the Dollar......Fact or Fiction?
Some no baloney facts about the claims made by some National Organizations
If you have a Lien filed against you, you will get advertisements from all over the country claiming they can settle your taxes for "pennies on the dollar." You also see advertisements on television and in other places which claim to be able to settle your liability for a small portion of what you owe.
Then, when you respond, they will charge you $3,500 to $6,000 to represent you. The sad part is that you might or might not qualify for an Offer in Compromise. We have heard stories about how these organizations just rip off people, then after they have gone through the process are told, "sorry, but the IRS just won't accept your proposal." And this is after going through thousands of dollars and a year of time. Often these people are left in much worse shape than when they started.
The truth of the matter is that the IRS doesn't just settle with taxpayers for minimal amounts without good reason. There are specific criteria that the IRS is required to follow before accepting settlements. There are also levels of review that must be met to accept an Offer.
FACT: There were approximately 122,000 Offers in Compromise filed in a recent year.
FACT: There were only about 12,000 accepted. That is less than 1 in 10 Offers accepted!
FACT: Many of these companies have had MANY complaints against them with the Better Business Bureau. Many of them have had lawsuits filed against them which they had to pay huge damages to settle.
The simple fact is that having a competent and honest Attorney handle your Offer will dramatically increase the chances of it being accepted! The problem is finding the right professional.
How do you know what to do? How do you know who to trust?
At Martelle, Bratton & Associates, P.A we will provide a free NO BULL evaluation of your circumstances. We will tell you whether or not you qualify for an Offer in Compromise or some other form of relief.
We will tell you honestly whether or not we can help.
We will tell you what we can and can't do for you
We will give you a written fee quote if we can help
We will vigorously represent you if you retain us
We will keep in contact with you
We will be completely honest with you
We have settled many cases for very modest amounts of money. We have also advised people that they will not qualify for an OIC. We tell people the truth!
Proud member of the Better Business Bureau
We are an A+ Rated Law Firm
For a Free, No Obligation Evaluation of whether you qualify for an Offer in Compromise or other relief:
At Martelle, Bratton & Associates, P.A., we specialize in helping individuals and businesses overcome IRS difficulties. We have 25 years' experience assisting clients. From our office in Eagle, Idaho, we provide the highest quality legal services to clients with IRS problems, throughout the United States. We are a tough, aggressive and highly skilled law firm. Our practice is focused on matters related to solving Internal Revenue Service Problems.
We represent people who have had the misfortune of falling behind in their IRS obligations and need assistance getting back on their feet again. We have the skill and expertise to negotiate with the IRS on your behalf and to work out Offers in Compromise for individuals and businesses. Our other services include the following:
Levy Release
Unfiled Tax Returns
Innocent Spouse
Installment Agreements
Appeals
Tax Court Representation
Penalty Relief
Bankruptcy Discharge of Taxes
Attorney Martin ("Marty") Martelle and his staff have extensive experience providing assistance with various kinds of IRS related issues, particularly Offers in Compromise and Unfiled Tax Returns.
Even if you do not have your W2's or other information, do not delay in contacting our office to assist you in preparing your tax returns. We can obtain all the necessary information required so that we can prepare your returns.
If we are providing you with tax help, we will deal with the IRS and State. You won't have to deal with them directly, in most cases!
Additionally, we can work with you to prevent the IRS or State Tax Commission from taking drastic actions. Such actions include liens, levies, audits, seizure of property or imposing penalties. Our fees are reasonable and we have very good business sense.
For a free consultation to have your IRS problems analyzed by a competent and experienced Tax Lawyer, contact us at:
1 877 TAX CREW (877 829 2739) or 208 938-8500
Or, fill out our online form and find out what we can do to assist you. We offer a No Obligation consultation to all clients, and special payment plans to those who need them.
Representing clients with tax problems throughout the United States.
Martelle, Bratton & Associates, P.A.
873 E. State Street
Eagle, Idaho 83616
