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Offers in Compromise also known as OIC’s is a program the IRS offers to
Taxpayers where there is great
doubt as to the collect ability of all the taxes owed due to certain
facts and circumstances. This is a ONE TIME DEAL ONLY!
The IRS will often settle the debt for much, much less
often pennies on the dollar. Again depending on the facts and circumstances.
This program has been on the books at the IRS for almost 60 years. If you are accepted for an OIC you
must stay current with your taxes for the next 5 years. This means filing on time and paying any taxes owed or
you will be kicked out of the program and your offer rejected at that time and any money sent kept by the IRS, applied to the
original debt and you will once again owe the remainder.
It wasn’t until 1993 when then IRS Commissioner Shirley Peterson saw that nearly 111 billion dollars was
going uncollected that she put out as edict that OIC’s
were to be looked at seriously. Her thinking was
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you can squeeze blood out of a rock. Otherwise many taxpayers
would go to the underground economy. It was a second chance for many taxpayers.
There are however many strict guidelines and rules in submitting an OIC.
There are national allowable living standards the IRS publishes which come from the
Bureau of Labor and Statistics you must adhere to in order to qualify for OIC acceptance. Forms needed to submit an OIC must be filled out perfectly or the IRS will reject you for just that reason. Suffice to say any taxpayer considering an OIC should consult a professional with considerable OIC submission experience. Not all tax professionals are familiar or even want to do OIC’s, as they are very time consuming.
The National Average for acceptance is 24%. At the William Hunter Co., we enjoy a 80% plus acceptance rate. We have prepared
literally hundreds of OIC’s. |
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