In our opinion, the IRS Offer in Compromise (OIC) program is one of the best tax resolution tools available to taxpayers. The program allows taxpayers to settle their taxes for less, or often much less than you owe (or what the government claims you owe). Recent tax legislation has given new hope to taxpayers who were disqualified by the old OIC procedures.
Our attorneys have extensive expertise with planning, preparing, negotiating and even appealing rejections of a program.
We get our edge by knowing and carefully navigating virtually every key regulation of the OIC. We also have a good working relationship with many specialists working for the IRS and California agencies.
Internal Revenue Code authorizes the IRS, to accept less than full amount of tax liability owed in any civil or criminal case arising under the tax laws prior to the case's referral to the Department of Justice. For an Offer in Compromise to be accepted, the taxpayer must establish to the satisfaction of the IRS that the taxpayer either: has no means of paying the tax, or does not actually owe the tax.
Prior to 1992 the IRS has been reluctant to settle tax liabilities. In February of 1992, the IRS announced new procedures for settling back taxes. The new procedures greatly liberalized OIC process and increased the likelihood that financially distressed taxpayers would be able to settle their liabilities for less than the full amount.
The IRS will accept an Offer when it is unlikely that the tax liability can be collected in full and the amount of the Offer in Compromise reasonably reflects collection potential. This program is a legitimate alternative to declaring a case as currently not collectible, or to a protracted installment agreement. The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government.
The IRS has the authority to settle or compromise federal tax liabilities by accepting less than full amount under certain circumstances. One of the following factors must be established in order for the IRS to accept an Offer and settle the liability:
Incidentally, the IRS is not the only agency with an OIC program. Tax Helpers also help taxpayers in settling delinquent taxes owed to California taxing agencies such as: The Franchise Tax Board, as well as EDD and the State Board of Equalization