Ten Steps to an Offer in Compromise
The IRS Offer in Compromise
As an insightful Orlando IRS tax relief lawyer, Attorney Brian Loughrin is always looking for the best method to successfully resolve your individual tax problem. For some taxpayers, that solution is an IRS program called an Offer in Compromise (OIC). The intent of this program is to allow you to discharge your debt to the IRS while the government is able to collect some of the back taxes that you owe.
The program has very specific eligibility requirements and the process must be done in a precise and accurate manner, in order to achieve a positive outcome. Brian uses his nearly 20 years of experience in a ten-step program designed to obtain a favorable conclusion to your case.
The first step is understanding the exact tax deficiency owed to the IRS and why they have determined that is the correct amount. In addition, to meet the eligibility requirements of this program, any past due returns must be filed. This will be accomplished at this beginning stage of the OIC process.
It is vital in your case to get from the IRS and other agencies all reports, records of IRS tax audits, internal memos, correspondence and similar material. Our office utilizes this information to help us find out if you do owe back taxes and to prepare a correct and factual OIC. This data is gathered in the second stage of getting ready to file your OIC.
In the all-important third stage, we figure out, based on our knowledge of the tax codes and your information, what you may factually owe to the IRS.
In the fourth step we take action to keep your property and assets safe from the IRS during the OIC process.
There are two kinds of compromises that we can propose to the IRS. A "doubt as to liability" applies when we have determined that you don't appear to have a tax deficiency with the IRS. "Doubt as to collectability" simply means that we all agree you have a tax debt but it is very doubtful you will be able to pay it all off. The fifth step consists of making this determination.
Orlando IRS Tax Relief Attorney
One of the requirements for an OIC is that a personal financial statement is presented that is factual and complete. We know how to complete these statements in an acceptable manner and this comprises the sixth step of the program.
There are certain forms which must be filled out and presented to the IRS in order to make certain that you qualify for an OIC. Failure to do so will, undoubtedly, result in your petition being disapproved. In the seventh step we prepare each form, quality checking them for correctness.
In the eighth step we figure out the minimum offer we want to give to the IRS and it is similar to walking a tightrope. If the offer is too low, it can get quickly rejected. When it is too high, you can spend money that you didn't have to.
A "collateral agreement" is a method used to make your deal with the IRS more attractive. By offering, for instance, to pay the IRS specific sums if you should unexpectedly become wealthy, it may assist in obtaining your OIC settlement. In our ninth step, we figure out if such an agreement will be needed and beneficial in your case.
This brings us to the last stage of the process, getting your Offer in Compromise properly filed. Success depends, to a great extent, in how well the first nine steps are done. Once the OIC is filed, tax collection actions will be brought to a halt and we can then work aggressively towards getting your case favorably concluded.
Contact an Orlando IRS tax relief attorney for vital information on how to successfully resolve your debt to the IRS.
