You have seen the advertisements: “Tax Settlement Services,” “Settle with the IRS for pennies on the dollar”, and “Let us eliminate your tax debt through an offer in compromise.” The key legal term is “offer in compromise”. An offer in compromise, sometimes just called an offer or an OIC, is a counter-offer made to the IRS where you state you can’t pay back your debt, but you can pay a lower amount of money instead to wipe the slate clean.
What some individuals offering these services fail to inform you is that a substantial amount of offers in compromise are rejected by the IRS. Around 40% of offers in compromise are accepted. That number is up from recent years due to the problems leftover from the Great Recession. So, the chances of settling your tax debt via an offer in compromise are low.
Moreover, it takes months and often hundreds or thousands of dollars spent before you realize that an offer in compromise is not a feasible solution to your problem. There is a formal process that must be taken and you’ll need to submit a lot of documentation. Plus, if your offer in compromise fails, the government can use that documentation to accelerate collection actions against you.
Nevertheless, the possibility is there. At the law offices of Zuckerman Law, L.L.C., we understand which tax situations have an excellent chance of attaining a tax settlement through an offer in compromise, which situations have a good chance of success in attaining an offer in compromise, and which situations are poor candidates for an offer in compromise.
You have to prove there’s no way the government will ever be able to get the money from you. (e.g. disability)
You have to prove extreme economic hardship, which is determined by the IRS and not your opinion.
Rarely, you can make a claim that the IRS calculated your tax wrong and try to prove it.
If you do get an offer in compromise deal accepted, you must follow through on it. There are no second chances once you’ve made a deal like this. If you fail to follow through with paying back your offer in compromise, you could face criminal charges. You must also stay up to date with your current tax filings. This is a one-shot deal to get you back in the IRS’ good graces.
We know how the IRS deals with offers in compromise. Our team has been working with the IRS for over 30 years. We invite you to schedule a free confidential consultation with us to discuss your tax issues and your options. We will sit with you and discuss your situation, outline the process and your options for you, and give you counsel based on our vast experience. You will appreciate the level of service and the straightforward communication we routinely provide. If you need an offers in compromise attorney in Hollywood, Aventura, Miami, or elsewhere, call us today.
Zuckerman Law, L.L.C.
Phone: (954) 280-8292