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Offer in Compromise FAQs

You owe the IRS a lot of money – more than you are financially able to pay. The weight of a tax burden is overwhelming when you do not know what to do. National Tax Relief offers expertise and experience in resolving tax debt issues for our clients. Our skillful guidance can help you see light at the end of the tunnel with an Offer in Compromise to the IRS for repaying the debt.

Generally, the Offer in Compromise program is a way for you to negotiate your tax debt with the IRS. This process can become time-consuming and last between one to two years before an amicable resolution is reached. From the beginning, National Tax Relief is open and honest about how we help you throughout the application process. We will not submit an offer to the IRS unless we believe you have at least a 90 percent chance for acceptance.


What is an Offer in Compromise?

An Offer in Compromise, also known as OIC or simply "offer", is an agreement between you and the IRS that will resolve your tax debt. Typically, this agreement is not handled in court as a way to settle past due amounts when receiving a full payment is unlikely. The offer to the IRS should reflect what you are able to pay based on your income and current assets. Often, this type of agreement significantly reduces your debt and/or unfiled income taxes.

In previous years, the IRS has acknowledged its inability to collect the full amount of tax debt owed by taxpayers. As a result, many view an Offer in Compromise as a win-win situation for the taxpayer and the agency. Often, the IRS collects more by accepting an OIC than by using traditional collection efforts. Further, the likelihood that taxpayers will comply with the terms for future filing and tax payments increases when an agreement is reached.


The Three Types of Offer in Compromise Programs

Currently, there are three basic types of OIC programs under Federal law that can resolve tax issues. The first is based on doubtful liability. This applies if you do not believe that the amount declared by the IRS is actually owed. Another is when you acknowledge the debt but do not have the financial capacity to pay the tax debt. This filing is based on a doubt as to collectibility.

The third type is known as an effective tax administration. The IRS considers all the factors regarding your debt and you do not dispute the amount owed.


How Does the Process for an Offer in Compromise Work?

To begin the OIC process, you must complete the forms appropriate for your tax situation. You will also need to gather supporting records to supplement your OIC request. The process also involves being in compliance with IRS tax regulations and filing the forms for the IRS to review.

In many cases, taxpayers will have their application returned and never reviewed because of errors. You can avoid this by allowing National Tax Relief to file the necessary paperwork on your behalf. The exorbitant amount of procedural requirements can become overwhelming. Nevertheless, all requirements must be met to increase the chances of your offer being accepted.

Our company will work diligently to guarantee that you meet all of the stringent requirements when you file an OIC through National Tax Relief. Wasting your time and money is not part of our business practices. We have expertise in the IRS guidelines for accepting an OIC. While not everyone will qualify because individual situations vary, National Tax Relief will pre-qualify you before submitting one document to the IRS.


Will You Qualify for an Offer in Compromise?

Qualifying for an OIC involves meeting certain criteria set by the IRS. Our tax experts at National Tax Relief work on your behalf by contacting the IRS to negotiate the best OIC settlement. With a team of tax resolution experts, CPAs and tax attorneys, no one is better prepared to negotiate a settlement once you qualify for the OIC program.

This is a laborious process with complex procedures that can take up to two years to complete. During that time, National Tax Relief is in contact with the IRS, making sure the agency completes its review and either approves or denies your request.

In some scenarios, an IRS agent may think that the offer is too low and make a counter offer. Generally, a counter offer is based on the IRS's analysis of whether the agency can collect and not on the total amount due.

The decision by the IRS agent is based on examining your financial past, present and future. Negotiations at this point will center in evaluating your assets, monthly income and living expenses.

Typically, the IRS withholds collection activities while your application is under review. During this time, we can help you prepare for the outcome. Our knowledge of the practices and policies of the IRS with taxpayers facing this type of situation has enabled us to successfully settle tax debt cases.

We make sure the IRS continues to follow its legal and administrative procedures throughout the process. Our ultimate goal is to make sure that you qualify and successfully resolve the debt.


Benefits of Using National Tax Relief

There are many advantages to using National Tax Relief in obtaining an Offer in Compromise settlement. We possess knowledge of IRS guidelines and procedures. Our tax law knowledge and keen negotiating skills helps to improve our clients' chances of being relieved of a huge tax burden.

Additionally, the many years that we have been in business has helped us build a mutual trust with contacts within the agency. We know what is necessary to build a favorable settlement for your situation. Not only do we help with current tax debt, but we can also remove the threat of problems with future income tax filings.

National Tax Relief is here to serve you with the best solution to your tax problems. Even if the OIC is rejected, we can pursue an Installment Agreement, Full Pay Service or Currently Not Collectible option with the IRS.

End Your Tax Debt:
  • National Tax Relief serves taxpayers ­ in all 50 states – with offices strategically located near IRS Offices.
  • You can retain National Tax Relief to begin solving your back tax problems today!
  • National Tax Relief resolves back taxes for corporations, partnerships, payroll and more.