When people are overwhelmed by tax debt, one of their options for resolving this debt can be to pursue an offer in compromise (OIC) with the IRS. An offer in compromise is specific program that can allow for the settlement tax debt, including any interest and penalties associated with that debt, for a fraction of the total amount owed.

Despite the benefits of the IRS offer in compromise program, however, there are some very specific eligibility requirements that people have to meet in order to be approved; otherwise, their OIC application will likely be rejected by the IRS.

As a result, it’s critical that people who need this type of tax debt settlement option contact a Denver tax law attorney at Goldman Law, LLC. While we have extensive experience dealing with the IRS and helping our clients successfully resolve their tax debt issues, we also have the skills and knowledge necessary to assist our clients in securing approvals for their offers in compromise.

Eligibility Requirements for an IRS Offer in Compromise

At Goldman Law, LLC, our Denver tax law attorney is skilled at obtaining IRS approvals for offers in compromise to help people resolve their outstanding tax debt issues.

At Goldman Law, LLC, our Denver tax law attorney is skilled at obtaining IRS approvals for offers in compromise to help people resolve their outstanding tax debt issues.

Before submitting an offer in compromise to the IRS, people will need to make sure that they meet all of the necessary eligibility requirements. Specifically, in order to be eligible for an IRS offer in compromise, people have to have done the following before applying:

  • Filed all tax returns that they are legally required to file with the IRS
  • Paid all required estimated tax payments for the current tax year
  • Made all required federal tax deposits (this only applies to business owners with employees)
  • Resolved any open bankruptcy cases that may be pending for the individual and/or his businesses (as the IRS will automatically reject an OIC application if a person or his business has an open bankruptcy case).

If people have met these requirements, they will then need to submit a correctly completed IRS Form 433-A, Collection Information Sheet to the IRS. This form will detail the various income, assets, property and debt that a person has. When submitting this form, a non-refundable fee of $186 must also be paid to the IRS for processing this application and request.

When an Offer in Compromise May Be Granted

In general, for the IRS to accept an offer in compromise as the resolution to a person’s outstanding tax debt, the offer will have to be equivalent to the “realizable value” of a person’s assets, as well as any future earnings a person is expected to take in.

If an offer in compromise is accepted, then a person:

  • Will likely have to pay a portion of the offer upfront (as a “deposit”)
  • Will have to choose whether to pay the offer in a lump sum or in installments.

Offers in Compromise: The Bottom Line

The bottom line is that, while an offer in compromise may be a viable option for settling tax debt, gaining IRS approval for an offer can be a complicated endeavor. Therefore, working with an experienced tax lawyer like the Denver tax law attorney at Goldman Law, LLC will be pivotal to ensuring that your offer in compromise is expertly completed and has the best chances for receiving approval from the IRS.

Denver Tax Law Attorney at Goldman Law, LLC

Are struggling with overwhelming tax debt? If so, don’t try to resolve this debt on your own. Instead, contact the trusted Denver tax law attorney at Goldman Law, LLC. He is ready to stand up to the IRS on your behalf and help you obtain the best possible resolution to your tax debt issues.

To receive a professional case evaluation, contact us by calling (303) 656-9529 or by emailing us using the contact form on this page. From our offices in Denver, we serve clients throughout Colorado.