Offer in Compromise – Settle IRS Tax Debt  – Former IRS Agent, Tax Lawyers

Upper Montclair, Cedar Grove, West Orange, Ridgewood, Mendham, Franklin Lakes, Newark, Bernardsville – New Jersey

Have Former IRS Agents, Managers and Instructors who worked and taught the Offer in Compromise Program at the IRS settle your IRS Tax Debt.

Settle for the lowest amount allowed by Law.

We have worked hundreds of case and know the exact formulas of the Internal Revenue Service. Over 60 years of combined IRS tax experience.

We taught Tax Law to new IRS agents and know the exact policies of settlement structures.

You can call us today, 1-866-700-1040 for a no cost consult and let us review your information to see if you are a Offer in Compromise candidate.

The IRS Offer In Compromise/ Settle with the IRS

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount of the taxes that are owed.

If the tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.

General Rule of thumb.

You must at least offer IRS all the equity you have in your total assets. IRS will not expect a offer unless your total value of assets to the IRS. Equity is consider a discounted fair market value.

Assets also included home value, IRA’s and Pension Plans

Call us for more details. 1-866-700-1040

In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).

The RCP is how the IRS measures the taxpayer’s ability to pay.

The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.

In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

The IRS may accept an OIC based on three grounds.

First, acceptance is permitted if there is doubt as to liability.

This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.

Second, acceptance is permitted if there is doubt that the amount owed is collectible.

This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.

Third, acceptance is permitted based on effective tax administration or exceptional circumstances.

An offer may be accepted based on effective tax administration when there is no doubt that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
The Process

While your offer in compromise is being evaluated by the IRS:

1.  Your non-refundable payments and fees will be applied to the tax liability,
2.  A Notice of Federal Tax Lien may be filed if the IRS feels the offer is frivolous,

3. Other collection activities may and are suspended,
4. The legal IRS tax assessment and collection period is extended for the time in offer status,
5.  You need to make all required  IRS tax payments associated with your offer in compromise,
6. You are not required to make payments on an existing installment agreement; and
7.  Your offer in compromise is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

Offer in Compromise – Settle IRS Tax Debt  – Former IRS Agent, Tax Lawyers 1-866-700-1040