Offers in Compromise: the toughest just got tougher…

IRS Offer in Compromise: find out if you qualify before submitting your offer! In their never ending quest to be the ultimate wet-blanket, the IRS has toughened the requirements needed to qualify for the gold ring of all tax settlements, the Offer in Compromise. The Offer in Compromise is considered the "gold ring" because it allows you to settle for significantly less than you owe. In order to allow someone to “settle” their tax debt, the IRS’s criteria to qualify for an Offer are much more stringent than their other programs. To have an Offer accepted, the IRS [...]

2017-05-23T10:01:49+00:00 April 6th, 2017|IRS News, Offer In Compromise, OIC|

IRS Offers in Compromise

IRS Offers in Compromise Tax Resolution expert Peter Y. Stephan of the Tax Resolution Institute talking about how IRS Offers in Compromise can help taxpayers who don't have the ability to pay their back taxes. You probably see TV commercials in the middle of the night from Tax Resolution companies talking to you about pennies on the dollar. Well, what they're talking about are Offers in Compromise. And yes, they are doable in certain circumstances. I've been doing this work for over 25 years and I can tell you that 90% of the offers we send from [...]

IRS Installment Agreements

Peter Y. Stephan, Director of the Tax Resolution Institute speaks on IRS Installment Agreements: I'm here today to talk to you about IRS Installment Agreements. In order to solve your IRS tax collection issue, there are all kinds of ways. One is to pay over a period of time. Why is that important? Why not settle for less with an Offer in Compromise? Well, the reason is simple. Most people who owe taxes don't qualify for an Offer in Compromise for one reason or another. The best option is to negotiate a Partial Pay installment agreement or a currently [...]

Are You Ready To Take Advantage Of The Easier IRS Offer In Compromise Program?

Easier IRS Offer In Compromise Program Help Although the IRS offer in compromise program has been around for decades, it has not functioned as it was originally designed. The original design was to resolve delinquent income tax debts by providing taxpayers with a way to make a reasonable offer to the federal government in the form of the IRS. The goal was that such an offer would be beneficial for both taxpayers and the federal government. However, the high bar of financial regulations that began with the program and ultimately prevented it from working. Today, however, it is [...]

Tax Resolution Question – Is An IRS Offer in Compromise Or An IRS Installment Agreement The Best Option?

IRS Offer in Compromise or IRS Installment Agreement? How Should I Resolve My IRS Tax Debt? Tax Resolution Question: I owe a significant tax debt to the IRS, but I don’t know whether an IRS Offer in Compromise or an IRS Installment Agreement is the best option for me. It all seems a bit overwhelming. How can I decide what makes the most sense for me? It all seems so confusing.  Tax Resolution Answer: First, take a deep breath because there is a solution out there that will work for you. Although it is impossible to provide a [...]

IRS Offer In Compromise vs IRS Installment Agreement

Do you know the difference between IRS installment agreements and IRS offers in compromise? If you owe an IRS delinquent income tax debt, you have options when it comes to paying off that debt. You never have to pay it off in one fell swoop if you don’t have the money to cover the tax debt. Even if you have the money, you still don’t have to pay it off in one fell swoop. Instead, you can negotiate a payment option with the IRS. Two of the most common payment options for delinquent tax debts are an IRS installment agreement [...]

Calculating OIC Reasonable Collection Potential And Having An IRS Offer In Compromise Accepted

A failure to fully understand reasonable collection potential (RCP) is why so many IRS Offers in Compromise are rejected. The IRS will consider an Offer in Compromise only if the amount offered is equal or greater to what the IRS calls the “reasonable collection potential” (RCP). In many cases of clients that have come to the Tax Resolution Institute after their Offer in Compromise was rejected by the IRS, we come to realize that an inexperienced accountant or tax advisor failed to properly calculate the RCP. The OIC Reasonable Collection Potential Your Reasonable Collection Potential The RCP is [...]

Do Not Spend Recklessly As 2013 Comes To An End – Know The IRS Guidelines For Dissipated Assets

When it comes to the question of dissipated assets in an IRS Offer in Compromise, the Tax Resolution Institute wants to make sure that taxpayers do not spend recklessly as 2013 comes to an end. In terms of the definition of dissipated assets, the IRS has issued guidelines for all examiners evaluating OICs. Definition of Dissipated Assets Internal Revenue Manual section 5.8.5.16 provides the following factual considerations or queries that examiners must analyze to determine whether an asset has been dissipated and should be included in the RCP: When an asset was dissipated in relation to the OIC submission (generally, [...]

As 2014 Approaches, Do You Qualify For An IRS Offer In Compromise?

A good question for a taxpayer with a delinquent IRS income tax debt to ask is whether or not they qualify for an IRS Offer in Compromise. An IRS Offer in Compromise (OIC) is an agreement between you and the IRS to settle a back tax debt for less than the full amount owed. Do You Qualify For An IRS Offer In Compromise? The Tax Resolution Institute understands why there is such a desire to qualify for an IRS Offers in Compromise because everyone wants the advantage of paying less than what they actually owe. Do You Qualify for [...]

The Challenge Of Negotiating An Offer In Compromise With IRS Revenue Officers Part 1

In this ongoing series about negotiating an Offer in Compromise with the IRS, the Tax Resolution Institute will examine the different parts of the law and illuminate the overall process. Although the IRS has the authority to accept an Offer in Compromise as a full settlement of tax debts, the great majority of OICs presented are rejected by IRS Revenue Officers. The reasons why the IRS will accept Offers in Compromise are explained in Policy Statement P-5-100: "The Service will accept an Offer In Compromise when it is unlikely that the tax liability can be collected in full and the [...]