Offer in Compromise (OIC) is a program under the administration of the Internal Revenue Service (IRS). This essentially permits taxpayers to settle their tax debt for an amount lesser than the actual amount they owe. This means a fresh start for the individual (taxpayer) with the IRS. For people who work as tax professionals, ‘IRS offer in compromise advice’ works as a useful tool to assess a client’s financial condition struggling with various payments with their state or federal tax department. For the year 2018, IRS accepted approximately 24k offers, which amounted to $262 million. That being said, the rejected offers were much more than that (close to 35k). Now, you might be asking the question — How to figure out if an offer in compromise is ideal for your client? This is exactly what we are going to figure out in this article piece. Let’s get into it.
Here’s everything you must know as per William D King–
Will an offer in compromise be useful for your client?
The primary aspect you need to consider when evaluating whether or not your client aptly fits into OIC requirements is the eligibility criteria. To be eligible, your client needs must:
Have filed tax (all) returns
Have received a bill for at least a single tax debt (included in the offer) Make all necessary tax payments for the entire year make all necessary federal tax deposits for the entire quarter (this is more important if they are a business owner and has significant employees in the business)
Furthermore, the IRS will take your request more seriously if there is a provision of determining financial obstacles of your client — Income, expenses, asset equity, age, lifestyle, education level, and collection statute expiration date. You can also go through the government online portal, where you will get all the information as well as updates to understand everything in detail. Just try to search for the relevant information and use it for your tax filing.
Additionally, while certain requirements and qualifications are no longer changeable, the offer specialist who will assess your client’s case will consider every aspect of your client’s situation. The lifestyle of your client will play a major role in deciding whether or not the specialist will refer you to the OIC. If you have claimed that your client financially is incapable of paying the entire tax debt, however, they have brand new Mustang in their parking space and additionally own a $2 million house, they are most probably not a fitting candidate for doubt as to the collectability offer in compromise.
William D King asks you to consider the above article and get in touch with an expert IRS offer in compromise attorney of your locality. You need to get in touch with an expert to get the right direction with your tax filing and other laws. Try searching for the best tax lawyers or experts, so you do not have to face any legal issues with your taxes in the future and also take the maximum benefits of it.