Am I Eligible for an Offer in Compromise?
Tax debts can be overwhelming, leaving you desperate for solutions. An Offer in Compromise (OIC) offers hope for resolving your tax issues.
In this article, we will explore the details of an OIC, its eligibility criteria, and the benefits it provides. You’ll gain a clear understanding of this tax resolution option and learn whether you qualify.
What is an Offer in Compromise?
An Offer in Compromise offers hope for people who find themselves drowning in tax liabilities.
It’s an agreement between a taxpayer and the IRS that lets you settle tax debt for less than the full amount owed. An OIC is a potential lifeline for people facing financial hardships, giving them an opportunity to regain control of their financial future.
By demonstrating an inability to pay the full amount or raising legitimate doubts about the accuracy of the tax liability, you may qualify for this resolution option.
Am I Eligible?
To determine eligibility for an Offer in Compromise, several factors are considered:
Ability to Pay:
The IRS assesses your financial situation (income, expenses, assets, and future earning potential) to determine your ability to pay the full tax debt.
If it’s clear that paying the entire amount would create substantial financial hardship for you, you may be eligible for an Offer in Compromise.
Doubt as to Liability:
If you genuinely dispute the amount of tax owed, you can qualify for an Offer in Compromise based on doubt as to liability. This means that you believe the IRS has incorrectly assessed your tax liability, and you have evidence to support your claim.
Doubt as to Collectibility:
When the IRS believes that collecting the full amount owed from you is unlikely or would cause financial hardship, they may consider an Offer in Compromise to expedite the resolution. If it can be demonstrated that collecting the full debt is not feasible, you may qualify for this option.
Effective Tax Administration:
In exceptional cases, even if you can afford to pay the full amount, circumstances such as severe health issues or extraordinary financial hardship can warrant an Offer in Compromise. The IRS considers factors beyond your financial situation to assess whether an OIC is necessary to ensure effective tax administration.
Taking the Next Step…
Navigating an Offer in Compromise successfully requires professional assistance. BPB Tax Resolutions specializes in tax resolution services, providing expertise tailored to your needs. Book a risk-free consultation to:
- Review your situation and assess eligibility
- Receive personalized guidance and advice
- Develop a strategy to resolve your tax debt
Take the first step towards financial freedom and contact Ben Butterfield with BPB Tax Resolutions!
With over 25 years of business experience in accounting and finance, Ben is a leading expert in solving individual and small business IRS problems. He will guide you through the eligibility evaluation and help you find the best solution to your tax debt.
Don’t let the weight of tax burdens hold you back. Discover the relief an Offer in Compromise will bring to your life.
Book your risk-free consultation with BPB Tax Resolutions today!
