Will the IRS accept my Offer in Compromise? Should I be worried?

On: March 31, 2024

Are you struggling to pay a tax debt that you owe? Or maybe you know you can’t pay the tax debt at all? Is it causing you financial hardship?

An offer in compromise is one option you have available to you and if the IRS accepts it, you may be able to settle the debt you owe for much less than initially owed. 

Offer in Compromise 

An offer in compromise, also known as an OIC, is a type of settlement between you, the taxpayer, and the IRS. The settlement is an agreement that allows you to pay a much smaller amount of taxes to the IRS than initially owed to them. 

It can be difficult to get an OIC approved, but if it is, it can help alleviate a huge financial burden for you. 

Before an offer in compromise is approved, the IRS will take four main factors into consideration, which include your income, expenses, ability to pay, and your asset equity. 

Do I even qualify for an OIC?

There are criteria you must meet before an OIC will even be considered by the IRS. If you do not qualify, you should not apply for one. 

To better understand if you qualify to file for an offer in compromise, it is best to speak with an experienced tax accountant. They will be able to walk you through the eligibility requirements and help you determine if you can apply. 

Since an OIC is very hard to have approved, it is crucial that you meet all the required criteria to apply and have all your documents gathered as well. It can be quite stressful trying to figure all of this out, which is why working with a tax team is highly advised. 

Submitting Your Offer in Compromise

As you work with a tax professional, they will work closely with you to ensure that you have all the proper documentation gathered for the application. An OIC application is quite lengthy and can be extremely confusing to complete. A single missed line item can mean that the IRS will reject the offer immediately. 

Your tax team can assist you in filling out the forms and submitting them directly to the IRS for a decision. It is important to note that the IRS can take a long time to make a decision on an OIC request as well. 

Will the IRS accept my OIC?

It can be difficult to get an OIC approved with the IRS; however, it is not impossible. Once the application has been submitted, the IRS will review it and make a determination. 

One of the most difficult parts of the OIC application is making sure to offer a fair settlement amount so that the IRS will accept it. A professional tax team will be able to help you determine the best proposed amount to offer the IRS. An amount that is too low can lead to your application being rejected. 

Get Professional Tax Help with Your Offer in Compromise 

Applying for an offer in compromise can be confusing, stressful, and difficult. It can take a long time for your application to be processed by the IRS as well. In addition, the IRS can deny the application, which may only cause you more undue stress and strain. 

At Leading Tax Group, our experienced tax professionals are here to assist you and walk you through the process. We will complete the OIC application with you and ensure it is completed correctly and accurately. Our team will aggressively represent you and work to get your OIC approved. 

Call Leading Tax Group today to discuss your options!