Experienced Minnesota Tax Lawyers in Edina and St. Anthony, 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, based on doubt as to liability (rare), or doubt as to collectibility. The tax attorneys at Pridgeon & Zoss, PLLC, 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 set formulas to detertmine the taxpayer’s “reasonable collection potential,” IRS 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 IRS accepts your OIC, your total tax liability will be settled at a discount, and you will be relieved of the remaining amount.
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 at Pridgeon & Zoss, PLLC, to discuss your options.
From offices in Edina and St. Anthony, our tax lawyers advise and represent clients in communities throughout Minnesota and Western Wisconsin. If you are facing a significant tax liability of $20,000 or more, contact the firm for a no-cost half-hour initial consultation with Minneapolis attorney for tax penalties at Pridgeon & Zoss, PLLC today. Contact us online or by telephone. Within the Twin Cities metro area, call 952-232-0371 or 612-455-8948; or call us toll free 877-221-1651 if you are located outside of the Twin Cities metro area. You may also use the convenient email contact form to explain your circumstances and request a consultation.
Weekday office hours are 9 a.m. to 5 p.m. in our Edina office, and 10:00 a.m. to 4:00 p.m. in our St. Anthony office. Evening and weekend appointments may be available by special arrangement.