Offers In Compromise (OIC) in Torrance, CA

When deciding whether you want to hire a professional to submit an offer in compromise on your behalf, beware of misleading claims, such as, “We can settle your tax debt for pennies on the dollar with an offer in compromise.”As the old saying goes: If it sounds too good to be true, it probably is.
Offers In Compromise (OIC) in Torrance, CA
WHAT IS AN OFFER IN COMPROMISE?
If you owe the IRS money, you may be able to resolve your liability for less than the full amount owed. This is called an offer in compromise. Not everyone qualifies, and strict conditions must be met before the IRS will even consider an offer. Some factors the IRS looks at are your ability to pay, doubt as to collectability, certainty regarding your liability to the IRS, and any hardship, equity, or exceptional circumstances you have. The amount of the offer in compromise is based on a complex formula consisting of many factors such as income, expenses, assets, liabilities, and what the IRS calls disposable income.
SHOULD YOU SUBMIT AN OFFER? Approximately 25 percent of all regular offers in compromise filed with the IRS will be accepted, and only after intense negotiations. Most, if not all, are initially rejected with a request for more information. We will only submit an offer in compromise after a thorough analysis of your situation and if we are of the opinion that you meet all the required IRS criteria for a successful OIC process — which can easily exceed one year, start to finish.On the other hand, for some taxpayers that qualify for an offer in compromise, a different course of action may yield better results at a lower cost to the client. We will always present all alternative solutions, comprehensively explaining their benefits and downsides to you before filing an offer in compromise on your behalf.
WHAT HAPPENS IF YOUR OFFER IS ACCEPTED? Once your offer in compromise has been accepted by the IRS and the negotiated debt has been paid, the IRS expects you to stay current on your taxes from that point forward. In fact, if you fail to remain in compliance for five years after the offer has been accepted, the IRS will reject the offer in compromise and reinstate the prior tax that was due.If you are being audited by the Internal Revenue Service, Franchise Tax Board, or any other state or local tax authority, contact the tax attorneys at David Lee Rice, A Professional Law Corporation, at (310) 517-8600 immediately for a consultation.

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