Offer in Compromise

If taxpayers are unable to pay a tax debt in full and an installment agreement is not an option, they may be able to take advantage of an offer in compromise (OIC). Generally, an OIC should be viewed as a last resort after taxpayers have explored all other available payment options. The IRS resolves less than one percent of all balance due accounts through the OIC program.

Read the IRS Taxpayer Alert...

What is an Offer in Compromise?

An offer in compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances.

A tax debt can be legally compromised for one of the following reasons:

• Doubt as to liability - Doubt exists that the assessed tax is correct.
• Doubt as to collectibility - Doubt exists that the taxpayer could ever pay the full amount of tax owed.
• Effective Tax Administration - There is no doubt the tax is correct and could be collected but an exceptional circumstance exists that allows the IRS to consider a taxpayer's OIC. To be eligible for a compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.

Tax Attorney Jim Ferraro can evaluate your particular tax situation and give you an honest appraisal of your chances for a successful Offer In Compromise. He'll also advise you of other options for resolving your IRS tax obligations...but he can only help you if you call or email him with your situation.

Don't put it off any longer...Contact Tax Atty. Jim Ferraro today!