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IRS Offer in Compromise

If you owe more in taxes than you would be able to pay even within an extended amount of time, you may be eligible for an Offer in Compromise (OIC). An OIC is a settlement offer you make to the IRS in which they agree to settle your tax debt for less than you owe. Qualifying for the OIC is an involved process, and you may have difficulty getting approval on your own. The specialists at the Highland Tax Group will help determine whether you qualify to make an Offer in Compromise, and if you are, we’ll guide you through the complicated process to get your offer accepted.

Qualifying Factors for the Offer in Compromise

Many factors go into determining whether you’re eligible for an Offer in Compromise. These include, but are not limited to, the following:

  • Proving your inability to pay the taxes owed. This involves showing mathematically that after all your obligations are met, there is not enough income to cover your taxes, nor is there likely to be in the foreseeable future. (The IRS will confirm this by investigating your finances, as well.)
  • Proving your ability to pay the amount of tax in the offer. You can’t qualify for an OIC without the IRS knowing you can keep up your end.
  • Keeping up with your current estimated taxes and withholding. OICs are only for past balances. If you underpay and end up owing taxes within the next 5 years, your OIC could be canceled.
  • Making sure all required past returns have been filed.

How Highland Tax Group Can Help

Our team of experts will work with you to determine whether you’re eligible for an Offer in Compromise. We start by completing a full financial analysis to see if you qualify for a reduction in your tax debt. We then calculate the amount of your offer by using your assets, liquidity, income versus expenses to determine discretionary income, as well as using a multiplier. We’ll also walk with you through the qualification process with the IRS, answer questions, address concerns, and appeal disagreements with the IRS until your OIC goes through.

Even if you don’t qualify for an IRS Offer in Compromise, the Highland Tax Group can help you find other alternatives for dealing with your tax debt.