Offer in Compromise overview
Most offers submitted to the IRS because there is a doubt regarding the collectability of the tax owed. An offer in compromise - doubt as to collectability (OIC-DATC) allows you to settle an outstanding tax debt with the IRS for less than the full amount of tax owed. For example, if you owe a significant amount of back taxes to the IRS and your income potential makes it impossible to pay the balance in full, you can apply for an OIC-DATC to decrease the amount you may pay to the IRS.
Offer qualifications
The following qualifications must be met to obtain an offer in compromise - doubt as to collectability
- You owe money to the IRS
- You owe more money than the IRS would be able to collect from you before the collection statute expiration date (usually 10-years from the time the tax is assessed)
- You are current with estimated tax payments and/or withholdings
- You have filed all required tax returns
- You are not currently in bankruptcy
We can help you determine whether you meet the above qualifications. If you do not, we can work to get you qualified.
What your tax professional will do
- First, we will ensure you are compliant with the tax law. Specifically, we will file all required tax returns and verify you paid the current year's withholding and estimated tax payments.
- Next, we will determine if you are a good offer candidate. We will do this by conducting a thorough financial analysis to demonstrate your need for an offer.
- Using the information you provide, we will calculate the lowest legal offer amount, complete the offer application, and submit it to the IRS.
- Lastly, we will confirm the IRS received your IRS. If the offer is not accepted we will appeal your offers rejection.