Offer in Compromise -
IRS Settlement

The Offer in Compromise (OIC) typically works better for personal tax liabilities and not so well for business tax liabilities.  With that said, if the amount you owe in taxes surpasses your ability to pay, you may qualify to request the IRS Offer in Compromise. The OIC is an agreement between the IRS and a taxpayer that settles tax debt for less than the full amount owed. There are three basic reasons the IRS will accept an OIC.
  1. Doubt as to Liability
  2. Doubt as to Collectibility
  3. Effective Tax Administration
All of M&M’s OIC clients, past and present, have submitted their Offer due to Doubt as to Collectibility. This means that the delinquent taxpayer doesn’t have the ability to pay the tax debt in full, not even through monthly payments.

The IRS scrutinizes every detail of the financial information and documents submitted with an OIC. They also consider overall health, education, work experience, past income, equity in assets, dissipated equity in assets and more when determining the acceptance or denial of an OIC. There are also several ways in which to pay your Offer amount, should it be accepted. And if you are fortunate enough to have your OIC accepted by the Service, there are plenty of ongoing tax responsibilities to adhere to or your OIC could be retracted and the full tax debt collected again.

View client case examples

How Do I Know If I Qualify for an Offer in Compromise?

The OIC is difficult to prepare correctly and the review process is lengthy and time consuming. A very common mistake that we see many delinquent taxpayers make is attempting the OIC on their own or with a general practicing attorney or accountant. Learning as you go is no way to solve your tax problems. In fact, you may make them worse. Your best bet for tax debt relief is to engage the Tax Resolution Experts at M&M. We’ll help you determine if you qualify for the Offer in Compromise and guide you through the process, from preparation of IRS Form 656 to the IRS’ determination.

Needless to say many dishonest tax resolution companies out there sell their clients the dream of a “pennies on the dollar” tax settlement, whether they qualify or not. At M&M, we’ll help you determine the tax debt solution that best fits your needs; that could be an OIC, a formal Installment Agreement, Penalty Abatement, Currently Not Collectible, or a hand full of other options that may be available to you. Contact the M&M Tax Resolution Experts today for a free tax debt consultation and find out how the M&M Tax Resolution System can help you.

Get Free Tax Guides & Evaluation