The offer in compromise program may represent a valuable source of relief for taxpayers struggling with debt, but it’s easy to see why many neglect to apply: the process can be stressful and time-consuming. What’s more, OIC standards are confusing to the point that many potential applicants simply assume that they won’t qualify.
While OIC acceptance is never guaranteed, a surprising variety of factors can influence the likelihood of success. These go well beyond the basic eligibility standards set in place by the IRS. How a request is framed may matter nearly as much as the numbers and evidence cited within the application.
The Need for Transparency
When evaluating OIC requests, the IRS seeks to verify whether applicants can afford to pay their taxes. A desirable outcome is often well within reach for those who come across as honest. This means outlining expenses and assets in detail.
The moment it looks like an applicant has something to hide, rejection becomes far more likely. For this reason, it’s important to include relevant information even if you worry about its impact on your offer.
Don’t Rely on Emotional Appeals
Calls to emotion can serve as the cherry on top for an effective OIC application, but they alone will not produce a success story. Such details should only be referenced after you’ve double-checked your numbers and provided ample evidence of your financial situation.
Heart-wrenching details of hardship will do little good if the facts and figures contained within an OIC application tell a different story. When in doubt, a straightforward, detail-oriented application is your best bet.
Given the important role presentation plays in the OIC process, there’s little room for error. Guidance from a tax resolution service is absolutely essential. Contact the Highland Tax Group today to learn how we can increase the likelihood of OIC acceptance.