One of the most frequently asked questions of us, as Tax Problem Resolution Attorneys is: “can I settle my taxes with the IRS for a portion of what I owe?”
The main way of settling tax debt is through an Offer in Compromise or OIC.
The IRS has made huge changes to the Offer program recently. They have reduced by 75%, in most cases the amount required to settle an OIC. That is right!! 75% reduction in the amount required to settle an Offer in Compromise! They have also made numerous exemptions for property that they no longer count in calculating how much a taxpayer must offer to settle their debt to the IRS. In many cases, that is literally pennies on the dollar.
This series of articles will explain what and OIC is, how they work and what it takes to qualify for one. Basically an Offer in Compromise is an agreement between a taxpayer, either individually or as a business to settle their tax debt for a portion of what is owed.
Simply put, the Internal Revenue Service wants as much as they can get from a person’s excess earnings for the next year, plus an amount equal to the equity in their assets. Before the changes they wanted as much as they could get from excess income for 4 years. This reduces the amount needed to settle an Offer by 75%!
In the next several articles we will discuss how Offers work, what it takes to qualify for an OIC and other information about Offers in Compromise. For more information, visit our website: Martelle Law