Tax Attorney San Jose, CA

Offer in Compromise

Offers in Compromise

An offer in compromise (OIC) is a unique settlement option where the IRS agrees to accept less than a taxpayer actually owes. Offers in Compromise are often granted to taxpayers who cannot reasonably pay their tax bill due to a financial hardship but can also be allowed in cases where the assessed amount of the tax bill was unjustified. Of course, getting the IRS to agree to this type of settlement option is not easy and many requests are denied. To negotiate the right offer, you need a skilled tax attorney like Nicholas Rosado. He can tell you if you qualify and knows how to create an offer the IRS will find acceptable.

There are different types of offers including:

Doubt as to Liability

To qualify for this provision, taxpayers must establish that the assessed tax liability is incorrect, and consequently, they should not be liable for the full amount.

Doubt as to Collectability

If taxpayers can show that they don't currently have the ability to pay their tax debts and the IRS will not recover the full amount, then they may qualify for a settle the debt for an amount that they can afford.

Effective Tax Administration

This relatively new option was created for taxpayers who are unable to pay off their tax debts because collection would result in hardship or be inequitable.

Do You Qualify for an Offer in Compromise?

Not everyone qualifies for this special type of tax relief. To find out if your particular situation fits the bill, call 408-217-2476 or request a consultation online with Rosado Tax Law