IRS Offer in Compromise (OIC) Settlements
The program that people most overwhelmingly ask us about is the IRS Offer in Compromise. Essentially a settlement offer based on the value of one’s assets and future disposable income, an OIC can save an individual tens of thousands of dollars in certain circumstances.
“Pennies on the Dollar” Savings
If you’ve heard of “pennies on the dollar” tax debt savings on TV or radio ads, this is where those savings can come from. Not everyone with an approved offer saves that much, however, so it’s important to have an educated professional consult with you before pursuing an OIC. Worse, some people actually wind up losing money trying to file an OIC by themselves, since the IRS typically requires a 20% nonrefundable deposit of the proposed settlement amount without guarantee of acceptance. If you’re going to file an Offer in Compromise, don’t gamble and lose by guessing your way through the forms yourself.
Who Qualifies For an IRS Settlement Offer?
People who qualify typically live paycheck-to-paycheck and don’t expect to be collectible on their IRS debt for the next decade. Even if you have a small amount of monthly disposable income, the IRS may still approve your application depending on the circumstances of your tax debt. Call us at 855-895-1892 for a second opinion with no obligation if you’re considering submitting the OIC application forms yourself.
New Streamlined Offer in Compromise (OIC) Changes
Now it’s easier than ever to obtain a settlement offer. The IRS took measures in May 2011 to streamline the OIC program, which means fewer denials and greater leniency regarding qualified monthly expenses:
As a result of a study conducted on the OIC program in 2009, a streamline offer program was implemented on June 28, 2010 in the Brookhaven and Memphis COIC Campuses. Currently, COIC criteria is defined as a wage earner and self-employed taxpayer with gross receipts of $500,000 or less and no employees. Qualified streamline OIC taxpayers have total household income of $100,000 or less and a total liability of less than $50,000. These offers will be worked with greater reliance on internal research, telephonic communication, and additional allowances for expenses and future income calculation.
Contact us ASAP to find out if you may qualify for an IRS Offer in Compromise. Don’t wait for a levy notice or, worse yet, a knock on your door from an IRS Revenue Officer!
