Strategic Tax Lawyers are Offer in Compromise Attorneys

Tuesday, August 25, 2015

We are the Strategic Tax Lawyers and we are IRS Fresh Start attorneys and experts in Offer in Compromise.  An OIC is an expansion of the IRS Fresh Start Initiative and is often offered to taxpayers who need to owe money to the IRS.  An OIC helps financially troubled taxpayers by providing a compromise to pay off the debt for less than the full amount owed to the IRS and quicker than usual.  Taxpayers need to follow the guidelines to see if they qualify for an OIC. In order to be eligible for an OIC, one of the requirements for taxpayers is to be up-to-date with their tax returns.  

As part of the process, a taxpayer will need to offer the IRS a reasonable amount to pay off their debt based on their finances.  Afterwards, it is up to the IRS to review the paperwork to determine each case.  The IRS will need to assess taxpayer’s income and the value of any assets to determine what a fair or compromised tax obligation will be. The IRS will use allowable living expenses to assess what the taxpayer’s ability to pay is.  This allows for fairness and consistency to determine what the average costs are for people by geographic areas. 

Then the IRS can either accept or deny the offer.  If the offer is denied, that means that a taxpayer, according to the IRS, should pay more than what was offered.  If an OIC is approved by the IRS, then a taxpayer has options to pay including a payment plan paid each month or a lump sum (20%) up front and the remainder paid in a few more payments. 

OICs allow taxpayers to be able to pay back student loans and to pay back any delinquent taxes.  

Taxpayers are encouraged to use the Offer in Compromise Pre-Qualifier tool on the IRS website to determine if they are eligible.  

At the Strategic Tax Lawyers Firm, our IRS Fresh Start attorneys and experts in Offer in Compromise have worked with clients on OIC.  We advise taxpayers, that if the IRS sends you a notification letter for a tax payment, you should act immediately.  Contact a tax attorney, but don’t just ignore the notice.  We have seen instances where a delay in action causes additional interest charges and/or penalties to your debt.  You have ways to avoid paying the penalties bu paying the amount you owe in full.  If you can’t pay in full, there may be an option for a payment plan. Otherwise, the other consideration is an OIC. 

The Strategic Tax Lawyers, LLP are a firm of IRS Fresh Start attorneys and experts in Offer in Compromise.  We, at the Strategic Tax Lawyers Firm, are experts in tax code with years of experience dealing with the IRS.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters.