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Yes, Sometimes The IRS Is Willing To Compromise

Each year, millions of Americans struggle to pay their tax bills. For those who fail to take action and either reach out or respond to the IRS, the agency may eventually resort to filing a tax lien or garnishing wages to recoup some or all of a tax debt. To avoid suffering these types of personal and financial setbacks, tax payers who are not able to pay a tax bill would be wise to explore their options with regard to qualifying for an IRS offer in compromise.

What Is An IRS Offer In Compromise?

An offer in compromise (OIC) is essentially an agreement between the IRS and a taxpayer, who cannot pay his or her entire tax bill, to repay a portion of a tax debt.

How Can I Obtain An Offer In Compromise?

While, if given the opportunity, most people would like to obtain an offer in compromise and only pay a portion of their tax debt, OICs are only granted to individuals who meet certain requirements including:

  1. Your tax debt is greater than your income and assets
  2. Your circumstances are considered to be exceptional and the repayment of your entire tax debt would create an undue burden
  3. Your tax debt amount is in question

In addition to meeting one of requirements, an individual must also be up-to-date with their tax filings and payments.

What Happens If My Offer In Compromise Is Accepted?

You may choose to repay the agreed upon amount by making either lump sum or installment payments. Any violation of the OIC constitutes a default at which time the OIC is voided and the IRS can pursue other means to recover the entire amount of debt owed including additional penalties and fines.

How An Attorney Can Help

Let's face it, no one enjoys paying taxes, but, with the April 18 IRS tax deadline quickly approaching, it's important to plan ahead and to estimate what you may owe. If you are a Nashville area resident who anticipates having trouble paying your 2016 tax bill, you have options-including applying for an IRS offer in compromise.

A tax attorney can answer your questions and provide advice about your options. In the event that you choose to apply for an OIC, an attorney can assist with the application or, if your application is rejected, an appeal.

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Law Offices of Charles R. Frazier
5258 Murfreesboro Road #B
La Vergne, TN 37086

Toll Free: 800-836-9077
Phone: 615-534-4628
Fax: 615-829-8352
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