Tempe AZ IRS Offer in Compromise

An Offer in Compromise (OIC) is an offer to pay less than what you owe to the IRS and receive a complete settlement of all past tax debts, including interest and penalties. The OIC program is only one of several ways to settle your Tempe AZ tax debt for less than what you owe. IRS Form 656 and Form 433-A are the OIC accepted forms for individuals. IRS Form 433-A Worksheet calculates the amount that needs to be offered. The terms and conditions of the OIC include filing and paying on time your taxes for the next five years. If you cannot file your individual tax return (1040) by April 15, you must request an automatic extension and file and full pay by the extension deadline. The IRS approves only a small percentage of the offers submitted. In 2004 only 16% of the OIC’s were accepted. In 2010 the percentage was 24%.

It is a big mistake to file an OIC unless you are fairly certain you will have acceptance. Interest and penalties continue to accrue as well as the statute of limitations. If it takes the IRS 2 years to reject you OIC, you will come out of the process in much worse shape than when you submitted your OIC.

Tax Debt Advisors is next doors to Tempe AZ and has the experience to properly calculate and submit an OIC with a high degree of success. Tax Debt Advisors has been assisting clients on Tempe AZ IRS problems for over 45 years.