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.
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
- 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.
Offer in Compromise Success Stories
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.
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.
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.
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.
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.