A Tax Attorney Can Help You With An Offer In Compromise
If you’re worried about your tax debt John Spurgeon and Associates can provide solutions for an offer in compromise settlement with the IRS.
What is an Offer In Compromise (OIC)
An offer in compromise is an agreement between the Internal Revenue Service (IRS) and a taxpayer that settles the outstanding tax bill for less than what is owed. You offer and they compromise. There are specific conditions to be met before the IRS will consider the offer. It is not a scheme to settle a legitimate tax debt for “pennies on the dollar”. It is a way to avoid getting a tax lien placed on your assets.
In short they will not “make a deal” if they feel that the tax liability can be paid off as a onetime payment or through an installment agreement. The IRS will measure your ability to pay including a valuation of assets that could be converted to cash such as bank accounts, cars, homes, investments and other assets. Here you need expert tax advice. John Spurgeon is both a tax lawyer and a CPA (Certified Public Accountant).
There are generally three types of offer in compromise (OIC) grounds:
1. Error which would put the liability in question. In other words the tax assessed is not correct. This could be due to many factors including audit errors, IRS examiner not taking into account certain facts or changes in circumstances and so on. Tax liabilities are based on accounting which is not an exact science—estimates have to be made to compute the profit of a business. If some material change has occurred, then the tax liability may also have changed.
2. An uncollectible tax debt – there doesn’t appear to be any hope of payment of the full amount. E.g. a self employed taxpayer suffers a major loss and there is a very little likelihood that the debt could be paid with the existing income levels or liquidation of assets.
3. Exceptional circumstances such as pressing medical costs, care of a relative and so on. The amount of tax owing is not disputed just a real lack of ability to pay.
As tax attorneys and CPAs with extensive experience with tax agencies we can help you negotiate an advantageous offer in compromise for tax debt relief. We offer a complementary consultation about your situation. Please call today 626-440-9518.