1. What is an Offer in Compromise (OIC)? 

An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Sometimes this is referred to as the “Fresh Start Initiative.

2. Who qualifies for an Offer in Compromise?

Eligibility for an Offer in Compromise depends on the taxpayer’s ability to pay, income, expenses, and asset equity. Each case is evaluated individually.

3. How can an Offer in Compromise benefit me?

An OIC can significantly reduce your tax debt, allowing you to resolve your tax liabilities and avoid further penalties and interest.

4. What are the steps involved in submitting an Offer in Compromise? 

The process involves completing and submitting paperwork, providing detailed financial information, and sometimes making an initial payment with the offer.

5. How long does it take to get an Offer in Compromise approved?

The approval process can take several months, depending on the complexity of your financial situation and the backlog of cases at the IRS.

6. What happens if my Offer in Compromise is rejected?

If your offer is rejected, we will appeal the decision on your behalf within 30 days to maximize your chances of success.

7. Can I make payments while my Offer in Compromise is being considered?

In some cases, payments may be required while your Offer in Compromise is being considered. The specifics depend on your individual circumstances. Our team can help you understand your payment obligations during the application process.

8. What are common reasons for Offer in Compromise rejection?

Common reasons include insufficient financial information, undervaluing assets, or the IRS determining that you can pay the full amount through an Installment Agreement or other means. 

9. Can I apply for an Offer in Compromise on my own, or do I need professional help?

While it’s possible to apply on your own, professional help from tax experts can increase the chances of acceptance and ensure all paperwork is correctly completed. 

10. What are the costs associated with submitting an Offer in Compromise?

There is an application fee for submitting an OIC, and sometimes a down payment may be required depending on your specific circumstances.