Tax Services - Offer in Compromise

Where installment agreements always favor the IRS because penalties and interest continue to accrue during the repayment period, Offers in Compromise provide the most value to you as the taxpayer.  Why?  Because penalties and interest do not increase while an OIC is in effect.

An Offer in Compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.

Not all taxpayers qualify for an Offer in Compromise.  Yes, you must qualify for an OIC.  If you have the ability to fully pay your tax liability in a lump sum or via an installment agreement, an offer in compromise will not be accepted.

However, the IRS generally accepts an Offer in Compromise when it is unlikely that the tax liability can be collected in full.  An OIC is a legitimate alternative to declaring a case currently not collectible. The goal of the IRS is to achieve collection of what is potentially collectible money at the earliest possible time and at the least cost to the federal government.

There are many other areas of the tax law that must be factored into the process when considering an Offer in Compromise, such as:

  • Doubt as to Collectability
  • Doubt as to Liability
  • Lump Sum Cash Offer
  • Short Term Periodic Payment Offer
  • Deferred Periodic Payment Offer
  • Approved Installment Agreement
  • When Federal Tax Liens are Released
    Levies
  • Statutory Period for Collection Suspended
  • Five Year Compliance
  • Appeal Rights

These concepts above are very important in understanding how an OIC works, whether an OIC will be accepted, and what to do in the event an OIC is rejected.  Tax Attorney Kenneth L. Sheppard, Jr. will be there to navigate you through the Offer in Compromise program.

Tax Lawyer Ken Sheppard’s approach can be easily defined as reasonably aggressive. He knows how to negotiate with the IRS and how to present a reasonable OIC.  As a client of Sheppard Law Offices, you will be required to submit the appropriate collection information statement along with all required supporting documentation so that we can effectively work for you.  To determine whether an OIC is right for you, contact Tax Attorney Kenneth Sheppard at 1-877-505-9455 for your free consultation.