An Offer in Compromise (OIC) allows you to settle your tax debt for less than the full amount owed. The OIC program was instituted by the IRS for taxpayers unable to pay off their IRS debt due to financial hardship or for those that claim the tax was wrongfully owed. In assessing an OIC, the IRS considers your unique set of facts and circumstances based on your ability to pay, income, expenses and asset equity.
To qualify for OIC consideration, you must show the IRS that one of the following conditions exist:
- Doubt as to Collectibility: This situation exists when there is some doubt as to whether the IRS can collect the tax debt from you, now or in the foreseeable future. This is the most common way to settle your taxes.
- Doubt as to Liability: This situation occurs when there is some doubt as to whether you actually owe the tax debt. The IRS may have assessed a tax in error due to mistake or lack of evidence. If this is the case, the IRS will terminate the tax debt upon proof.
- Exceptional Circumstances: This situation occurs when payment of your tax debt in full would cause an “economic hardship” or would be “unfair” or “inequitable.” This is the least common type of tax resolution.
If you qualify, a Southern California offer in compromise attorney will help you resolve your taxes by determining which program is right for you by evaluating all financial documentation and determining the least amount that the IRS will accept from you. It is crucial that your OIC is submitted properly by an experienced San Diego tax attorney or the result could mean a rejection of your offer or even worse, you may be required to pay more than necessary. If you qualify, this is the best deal you can receive from the IRS. Please contact Delia Law for a no cost consultation for tax resolution. You can do so either by completing our online form or by calling 619.639.3336. We can assist you wherever you live or you can visit a Delia Law San Diego tax attorney at 12707 High Bluff Drive, Suite 200, or in Los Angeles at 10880 Wilshire Boulevard Suite 1101 Los Angeles, CA 90245
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