Tax Services

Offer in Compromise

If you owe back taxes to the IRS and cannot afford to pay the amount in full, a qualified IRS tax attorney may be able to set up an Offer in Compromise (OIC) for you.  An Offer in Compromise is an agreement between you and the IRS that settles your debt for less than the full amount owed.  In addition to reducing the amount of your debt, it also puts a halt to the interest and penalties that would otherwise continue to accrue.

Because it prevents the accumulation of interest and penalties, an OIC will provide you with greater back tax help than you would obtain with an installment agreement.  Not everyone is eligible for an Offer in Compromise, though.  Tax laws are very complicated, so the best way to determine your eligibility is to enlist the help of an experienced IRS debt attorney, such as Kenneth Sheppard.

How Do You Qualify for an Offer in Compromise?

You must meet certain criteria in order to qualify for an OIC.  Owing the IRS a large sum for unfiled tax returns is not in itself a sufficient qualifier.  If the IRS decides that you can afford to pay your tax liability via a monthly installment arrangement or in one lump sum, they will not agree to an Offer in Compromise; however, the IRS is inclined to accept an OIC when the likelihood of collecting the full amount you owe is slim. Rather than declare your case uncollectible, the IRS will agree to an OIC so that they can get what is potentially collectible money at the earliest possible time and at the least cost to the federal government.

Offers in Compromise and Federal Tax Law

Here are some of the points of law that your IRS debt attorney will consider before negotiating with the IRS for an OIC: 

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

IRS tax attorney Ken Sheppard has extensive experience obtaining reasonable OICs from the IRS.  As a client of Sheppard Law Offices, you will be required to submit a collection information statement and all supporting documentation.  To determine whether an OIC is right for you, contact Tax Attorney Kenneth Sheppard at 1-877-505-9455 for your free consultation.