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What Is an IRS Offer in Compromise?

When you’re unable to pay off major tax debt with the Internal Revenue Service (IRS), you may feel incredibly overwhelmed and financially vulnerable. However, the IRS does provide a fairly straightforward debt relief option for certain qualifying individuals: An Offer in Compromise also called an OIC or simply an “offer.”

If you manage to receive an offer in compromise from the IRS, you could be able to wipe the slate clean at last, all while paying significantly less than your original tax debt amount. When you need help finding an effective solution to your tax problems, our experienced Tulsa tax lawyer Charles D. Harrison can help you explore all the options, and prepare the correct documentation for any requests.

When Can I Qualify for an Offer in Compromise?

Although the IRS can be somewhat overzealous in their collection efforts at times, you have to remember that you have the right to appeal their decisions. You also have the right to seek alternative solutions when faced with an overwhelming tax burden. Because many people have a hard time paying their full tax debts, the IRS created the offer in compromise as a way to ensure that they still receive some form of payment, even if it comes at a dramatic discount for the consumer.

Recently, the IRS has been much more willing to approve OICs, and it’s estimated that up to 40% of all OIC requests are now accepted. But before you submit your request, it’s recommended that you try out their online pre-qualifier tool, and confirm that you actually meet the eligibility requirements for this unique debt relief solution.

You could be considered eligible for an OIC if:

  • You have little to no ability to pay the full debt within a “reasonable” time period, as determined by the IRS.
  • You are currently suffering from a significant financial hardship, such as the death of a close loved one or the loss of a major income source.
  • You would face significant financial hardship if you were required to pay the full debt within the suggested time period.

Of course, once you file an OIC request, the IRS will perform an extensive investigation into your financial situation – and they’ll look closely at your projected assets, income, and expenses before making a decision. Even if you pass the online pre-qualifier tool and seem to meet the eligibility requirements, there’s no guarantee that the IRS will approve your offer.

That’s why it’s highly recommended that you speak with a seasoned Tulsa tax lawyer as soon as possible. From helping you file all the correct forms to appealing a rejected OIC, Attorney Charles Harrison can be your advocate with the IRS and ensure that you find peace of mind for the future. With more than 35 years of experience helping people who struggle with tax debt, Attorney Harrison can provide the kind of personalized, dedicated legal service that you need during this difficult time.

When you’re overwhelmed by tax debt, don’t hesitate to contact Eagleton, Eagleton & Harrison at (918) 584-0462 or schedule your consultation online!

Additional Reading: What You Need to Know about the IRS Fresh Start Program