Offers in Compromise — Settlement Solutions
An Experienced Tax Lawyer in Edina, MN
An offer in compromise (OIC) is an agreement between a taxpayer and the IRS in which the taxpayer's liabilities are settled for less than the total amount owed. At the law firm of Mark A. Pridgeon, Attorney at Law, we can help you determine if you qualify for an OIC and help you through the process if you do.
Offers in Compromise Based on Inability to Pay
The IRS will examine the taxpayer's assets and liabilities in conjunction with income and expenses; applying a set formula, it will determine whether the taxpayer is able to pay the outstanding liability. Our office reviews your financial information and works to ensure all of your expenses and liabilities are captured in the documentation submitted for review. Based on the financial information provided, we will advise you regarding an anticipated OIC amount so you will be prepared. If you accept an OIC, your total tax liability will be settled at a discount to you.
Conditions for IRS Offers in Compromise
The IRS requires taxpayers who accept an offer in compromise to:
- Stay current on filing and paying taxes for five years from the date of acceptance of the OIC
- Remain current in filing and paying estimates or withholding taxes for the present tax year
If these conditions are not met, the taxpayer will be considered in default and all of the debt that was discounted in the OIC will be charged in full.
If you think you may qualify for an IRS offer in compromise, it would be wise to speak with a qualified tax attorney to discuss your options. Contact us online or by phone at 952-232-0371 with any questions you may have. We are open during regular business hours or you may leave us a voice mail at any time. We offer a free initial half-hour consultation to review your situation so that we can give you an honest appraisal whether and how we can help you.