Is an Offer in Compromise Right for You?

If you feel that you are unable to pay the liability in a lump sum or make payments on your tax liability through an installment agreement or other method, then you would be a good candidate for an offer in compromise. The OIC promotes tax accountability and prudence with future payments and filing requirements.

To qualify for an Offer In Compromise, you must meet all of the following conditions:

• Complete Applicable Forms
• There is a $150 IRS fee associated with filing the offer in compromise, and if you choose to use our assistance, our fee is combined with the Offer In Compromise Fee.*
• Filed all required federal tax returns;
• Filed and paid any required employment tax returns on time for the two quarters prior to filing the OIC, and is current with deposits for the quarter in which the offer in compromise was submitted;
• You can't be a debtor in a bankruptcy case.

* There are two reasons you wouldn't be required to pay the $150 application fee which filing your OIC:  1)  The Offer In Compromise is submitted based solely on 'doubt as to liability.  2) If your total monthly income falls at or below the income levels based on the Department of Health and Human Services poverty guidelines.

You must Be Compliant for 5 years after your OIC is accepted

To avoid defaulting an OIC once it is accepted by the IRS, taxpayers must remain in compliance in the filing and payment of all of their taxes for the next 5 years, or until the offered amount is paid off whichever is longer.

Federal Tax Liens are Not Released

If you have any liens on your property on record prior to the OIC being submitted, the liens will not be released until the terms of the offer in compromise are satisfied, or until what you offered them is paid in full.