Ohio Tax Attorney: Offers in Compromise

Resolving IRS Problems

An Offer in Compromise (OIC) is an agreement between the taxpayer and the government which settles a tax liability for payment of less than the full amount owed. It is a tax relief program which is designed to allow certain individuals and business who qualify to settle their tax liabilities. The IRS generally accepts an Offer in Compromise when it is likely that the tax cannot be collected in full and the amount offered reasonably reflects collection potential. An “OIC” is a legitimate alternative to declaring a case not collectible or to an installment agreement. For many individuals, especially those who are self-employed, taxes are at the bottom of the list of creditors to pay. Typically, and for good reason, priority is given to the payment of rent, food, medicine, mortgages, and other necessities of life. It can also be difficult to save enough money from one’s income each month to be able to pay personal and/or business taxes. An Ohio tax attorney can assist you to figure out if you qualify for an Offer in Compromise.

Is an Offer in Compromise the right solution?

There are special circumstances which the IRS accepts and which often lead to a settlement. These circumstances are as follows:

• The taxpayer has assets sufficient to satisfy the tax liability, but has a dependant with a serious long-term illness, preventing them from paying the full amount due and even meeting basic living expenses.
• The taxpayer is retired and the only income he or she has is from a pension and an IRA. The use of the pension or IRA to satisfy the tax liability would leave the individual without adequate means to provide for his or her basic living expenses.
• The taxpayer is disabled and lives on a fixed income. Full payment would not allow the taxpayer to meet basic living expenses.

If you believe that you may have a special circumstance, then we may be able to help you file for acceptance of an Offer in Compromise under the “effective tax administration” option. At Sheppard Low Offices, we are tax professionals who are extremely efficient when it comes to tax negotiations with the IRS. If you qualify, Attorney Ken Sheppard can file for you and begin negotiations to reduce your total tax debt to an amount that you can afford. We are very familiar with the U.S. Tax Code and we know how to utilize the formulas when calculating your settlement.

For help with your Offer in Compromise, or to get more information, contact an Ohio tax lawyer.