Ten Steps to Offer in Compromise
Pursuing an OIC
Offer in Compromise (OIC) is a program available to individuals meeting certain criteria that allows them to settle their debt to the IRS for a percentage of what they owe. This is often a very small percentage of the full amount so can be of great advantage to the taxpayer. If you are having trouble paying your tax debt, a
Miami tax attorney can review your case and let you know if you qualify to apply for an OIC. At the Law Office of A. Antonio Tomas, P.A., the ten steps we take if we find that you qualify are:
- File all overdue returns and review the status of your case per the IRS.
- Review your tax account using the Freedom of Information Act, along with how the relevant laws apply to your situation to see if you are liable for all of the alleged tax debt. Review collection statutes that may prevent any IRS collection action against you.
- Come to an agreement with IRS on how much is actually owed by correcting IRS errors or assumptions as needed.
- Certain actions designed to prevent the IRS from seizing your assets before you are able to file for your O IC.
- Determine whether to pursue your OIC based on Doubt as to Liability or Doubt as to Collectability.
- Draft your personal financial statement.
- Complete the Collection Information Statements to submit to the IRS, along with compiling the needed supporting documents.
- Calculate the amount of your OIC offer.
- Determine if you need a collateral agreement, which makes certain concessions regarding future income and waived deductions and losses for certain period.
- Review and submit your OIC.
The OIC submission process can be quite complex, especially as many of the terms the IRS uses on the required forms have different definitions than the standard accounting definitions. Determining the correct amount to offer is also vital so as not to be rejected for too low an offer or to waste money with an offer that is too high. Approximately 85% of OICs are rejected, which is why the help of a Miami tax attorney is crucial.