Eliminate Tens of Thousands of Dollars in Tax Debt
With an IRS Offer in Compromise you can eliminate tens of thousands of dollars in tax debt, so you can begin again and progress forward in life without the burdens of back taxes.
IRS Offer in Compromise
What Is the IRS Offer in Compromise?
The Offer In Compromise (OIC) is a federal program that allows taxpayers to resolve tax debt for less than the amount owed. It is a way for you to get out of trouble with the IRS when you simply cannot pay your tax debt.
The Offer In Compromise offers an alternative to wage garnishment, tax levies, and tax liens. OIC benefits allow you to:
- Avoid Bankruptcy
- ReduceTax Debt
- Release Federal Tax Liens
- Stop Collections
Many state revenue agencies are also willing to compromise on state taxes. For example, if you’re behind on Georgia state taxes, you may be able to save money with a Georgia offer in compromise. Unfortunately, if your account has been assigned to a private collection agency, you won’t be able to request an offer in compromise through them, but you can contact the IRS or work with a tax professional to apply for an OIC.
Do You Qualify for an Offer in Compromise?
There are strict qualifications for tax resolution programs. Because taxes are necessary to manage our government and public expenses, the IRS will only consider an Offer In Compromise for three reasons:
- There is a dispute as to whether the IRS correctly determined the amount owed.
- There is reasonable doubt that the debt is collectible. The taxpayers assets and income are less than the amount owed.
- Based on effective tax administration, meaning the debt is correct and the taxpayer is able to pay the debt in full. However, it would cause economic hardship.
The IRS looks at each individual case for Offer In Compromise, paying special attention to unique circumstances. You have the best possibility of acceptance if you are:
- Retired on a Fixed Income
- In Legal Trouble With the IRS
- Face Bankruptcy Due to Unpaid Taxes
- Can’t Pay a Full Tax Liability Without Experiencing Economic Hardship
- Meet Federal Low-Income Guidelines
If you do not qualify for an Offer In Compromise, our tax attorneys at Wiggam Law will find other options for tax resolution.
IRS Offer in Compromise Process
The Offer In Compromise Process is not an easy one. You must complete and submit several forms, including Form 656, propose a strategic offer, and complete a collection information statement. It is basically like a tax audit on your income and assets. The IRS needs proof that you are unable to pay your tax bill.
In addition to the overwhelming amount of paperwork, you must include a $150 application fee and the first payment of your offer or 20% of the offered lump sum.
At Wiggam Law, our experienced tax attorneys understand the necessary strategies to get an Offer In Compromise approved while saving you money.
How to Get an Offer in Compromise Approved
The Offer In Compromise Process is a complex process that includes a number of detailed elements in which our tax attorneys Wiggam Law can provide explanation and guidance.
The IRS explains, “We consider your unique set of facts and circumstances:
- Ability to Pay
- Income
- Expenses
- Asset Equity
We generally approve an Offer In Compromise when the amount you offer represents the most we can expect to collect within a reasonable period of time.”
The tax lawyers at Wiggam Law provide expert knowledge and assistance to help you fill out the appropriate forms, propose the best offer, and negotiate with the IRS for a successful Offer In Compromise.
Discover the truth about reducing your tax liabilities with Offers in Compromise by reading our free whitepaper
Offer in Compromise Success Stories
$641,008 Saved
Our client was charged a $646,008 excise tax under North Carolina’s Unauthorized Substance Act. When he came to our firm, his opportunity to appeal the assessment had already expired and we could not contest the liability. We submitted an Offer in Compromise with the North Carolina Department of Revenue in the amount of $5,000 and it was accepted. This saved our client a total of $641,008.
$122,000 Saved
Our client, a self-employed marketing consultant, owed more than $100,000 of unsecured business debt and $170,000 of income taxes. We first filed a Chapter 7 bankruptcy for the client which removed the business debt and $26,000 of income tax debt. We then submitted an Offer in Compromise and successfully negotiated a settlement for $17,222 which saved our client over $122,000 on the remaining income tax debt.
$99,131.00 Saved
Our client was assessed $99,851.00 in unpaid sales taxes related to her ex-husbands business. She was not involved with the business but was listed as an officer by her ex-husband, which caused the Georgia Department of Revenue to assess her personally for the unpaid sales tax. We filed a Georgia Offer in Compromise based on “doubt as to liability” for $720.00, and it was accepted, saving our client $99,131.00.
$210,000 Saved
Our client, a self-employed individual, had accumulated a federal income tax liability of $196,034 for tax years 2008-2019. We submitted an Offer in Compromise and settled this liability for $860. We also settled our client’s Georgia income tax liability of approximately $15,500 for $250. Our efforts resulted in savings of over $210,000.
$542,852 Saved
The taxpayer did not file income tax returns, or C corp. tax returns for her business, from 2006 to 2012. The IRS audited her and the business and assessed total taxes of $609,175 and a fraud penalty of $56,783. We contested these audit assessments in Tax Court and successfully removed the fraud penalty in its entirety and reduced the tax balance to $123,106 for a total savings of $542,852. We then filed an offer in compromise on behalf of the taxpayer and settled the remaining $123,106 tax liability for $33,410.
Contact Our Tax Attorneys in Atlanta, GA
If you’re in over your head and considering an Offer In Compromise, the Wiggam Law tax lawyers have the professional experience and knowledge necessary to guide you through an IRS Offer In Compromise.