What is an Offer in Compromise?
An Offer in Compromise is one of the most challenging resolutions for taxpayers to meet the qualification criteria. Although an offer in compromise is the best option available through the Fresh Start Program, the qualifications are strict.
The IRS will only accept taxpayers who do not have the financial resources to pay off their federal tax debt in full. Achieving an Offer in Compromise requires an extremely strong case proving the financial hardship of the taxpayer.
When properly deliberated, an Offer in Compromise can reduce a taxpayer’s liability to a small fraction of the original amount. Taxpayers who obtain their Offer in Compromises through TaxRise can see a reduction upwards of 90%.
How Do You Qualify For An Offer In Compromise?
To qualify for an Offer in Compromise, you must first ensure that you are compliant with the IRS.
The IRS bases your compliance on your current tax filing status. If you have unfiled tax returns, you are not compliant with the IRS, and you are not qualified for an Offer in Compromise, nor are you compliant with any other type of IRS Fresh Start Initiative relief program.
If you need assistance with filing your taxes, please contact a TaxRise specialist at 833-419-RISE(7473). We have a staff of tax preparers who routinely file the most complicated tax returns for businesses and individuals alike.
Once you are up to date with your tax filings, you can submit IRS Form 9465 requesting an Offer in Compromise.
Offer In Compromise Rejection
While it is not necessarily challenging to submit IRS form 9465, the IRS regularly rejects requests for Offers in Compromises.
It is best to submit for an Offer in Compromise after compiling a robust case proving your financial hardship and inability to pay your tax balance.
There is no minimum tax liability amount necessary to qualify for an Offer in Compromise. Instead, resolution eligibility depends on each taxpayer’s unique financial and liability situation.
Offer In Compromise Scams
Refer to our “How to Avoid Tax Relief Scams” section to ensure that you stay away from fraudulent companies.
The IRS is the only one that can approve of an offer in compromise. But these companies will promise you an OIC without first analyzing your specific tax situation or preparing the necessary forms for the IRS.
Also, when it comes to scams, keep in mind that the IRS only sends letters. If you receive an email concerning your account, contact the IRS to confirm its validity.
Can I Qualify For An Offer In Compromise On My Own?
You are not required to seek professional help to submit for an Offer in Compromise. However, most would strongly advise that a taxpayer work with a tax relief professional.
An Offer in Compromise is the most difficult resolution to achieve and often requires lots of tax knowledge. Representing yourself in an Offer in Compromise case is equivalent to facing a prosecutor without a lawyer present.
The IRS will use all of their power, resources, and tricks to disqualify you from an Offer in Compromise. IRS examiners are trained to analyze your submission with fine-tooth combs – and are quick to reject any OIC submission for the slightest of errors. Regularly, taxpayers aren’t aware of the language and financial documents the IRS is looking for, also resulting in rejection.
Additionally, if a taxpayer submits an Offer in Compromise to the IRS and their submission gets rejected, it drastically limits their chances of finding a successful resolution for their tax bill in subsequent attempts.
Why Work With TaxRise To Secure My Offer In Compromise?
Your chance of achieving an offer in compromise increases when you have a certified tax relief company like TaxRise on your side.
TaxRise is a settlement-focused tax relief company. Our tax attorneys work with the IRS and get settlement offers approved every single day. We have a great understanding of the IRS Fresh Start Program qualifications, and we will not be bullied or tricked by the IRS into a less-than-optimal resolution.
Your tax relief team will work diligently to develop a financial hardship case specifically for you and your needs. Furthermore, we will deliberate with the IRS on your behalf and help you maintain compliance throughout your resolution.
Taking on the IRS isn’t a one-man job. It takes an entire team of professionals to successfully achieve a resolution with the IRS. TaxRise has just that; a team of dedicated experienced specialists.
Our team has a stellar 98.6% success rate placing our clients in an IRS resolution, one of the many reasons we have become the fastest-growing tax relief company in the nation.
Next Steps
If you’re interested to see if an Offer in Compromise is right for you, give us a call at 833-419-RISE