Written by Scott Allen

Do I file an IRS Offer in Compromise?

First, an Offer in Compromise (OIC) is not a legal matter with the IRS and you don’t need to be represented by an Arizona IRS Tax Attorney.

One must “qualify” in order to petition the IRS to accept a payment for less than they owe.  This applies to the tax owed and the penalties and interest that have been added.  The IRS must be convinced that a taxpayer owes more than they could pay back in a reasonable period.  Most IRS tax advisors use the term, “ever pay back,” but that is not true.  Some clients of Scott Allen E.A. have been approved for an OIC and years later could have paid back the full amount as their financial situation greatly improved.

Scott Allen E.A has expertise in the IRS OIC program.  The IRS will base an acceptable OIC when there is doubt as to collectability, doubt as to liability, or in cases deemed “Hardship.”  OIC can be filed for individuals, married couples, and individuals from a divorce that created the tax liability.

The IRS instituted the OIC program to collect as quickly as possible the highest amount available at the lowest cost to the U. S. government.  The second purpose is to allow taxpayers to resolve their indebtedness and begin paying taxes in the future when due.  It is critical that you use an expert in IRS resolutions as they apply to the OIC program.  Offers can take several months to get a determination and filing an offer that will ultimately not be accepted is a big mistake as interest and penalties will continue to add to the debt and there will be an extension of time added to the statute of limitations for the IRS to collect the debt.

Call Scott Allen E.A. for a free consultation to determine if an OIC is your best option.  Many times it is not the best option.  Scott can be reached at 480-926-9300.