In order to make a deal, one of the following
conditions must exist:

• Doubt as to Collectability
• Doubt as to Liability
• Exceptional Circumstances

An OIC is most often filed for doubt as to collectability, that is, when a taxpayer simply does not have the means to pay the debt they owe. The government would rather compromise the debt and collect some of what you owe then nothing at all. But they won’t settle for less than what they deem collectable.

With the help of a qualified CPA with experience in OIC filings, the taxpayer can make an offer to the taxing agency based on a complicated computation of what they can afford to pay. The IRS will then either accept or reject the offer. There is often a back and forth process of negotiation. The process is one that takes time, full disclosure of all assets and liabilities and of course the government’s red tape specialty: forms and paperwork!

Before we can submit an OIC on your behalf,
you must:

• be current with all tax return filings
• have submitted all estimated tax payments as well as payroll tax deposits (if a business) for the current year
• NOT be in an open bankruptcy proceeding

Won’t bankruptcy eliminate my tax debt?

No. The fact is bankruptcy has almost no impact on your tax debt. Almost all tax debts are immune to any bankruptcy action. These debts survive and will haunt you unless you negotiate an Offer in Compromise.

Will an OIC affect my credit score?

Yes. But, the good news is it will affect it positively! That’s right. Once an OIC has been accepted by the taxing authority involved and your debt has been fully satisfied, liens are released, and your credit score will improve. Unlike the dark cloud of bankruptcies, which take years to come out from under, an OIC can help restore your creditworthiness.

Recognize that this is your opportunity to get out from under burdensome tax debt but remember it’s also a one-time deal.
The government is giving you a chance to start over but expects you to get back on track.

What does that mean?

• You must stay current on all taxes including estimated taxes for a period of at least 5 years following the acceptance of an Offer
• You must make regular payments to ensure repayment of the settlement amount within a reasonable timeframe

Failure to stay current or make regular payments on the agreed-to amount can trigger a default that will likely take the settlement off the table leaving you owing the original amount in full.

717 Green Valley Road Ste 200
T :336 825 7994