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Tax Debt Settlements and IRS Offer In Compromises

If you have been audited by the IRS and have received notification that you owe a significant tax liability, or are engaged in a dispute related to taxes owed, there may be options available to work out a settlement. An offer in compromise (OIC) is an agreement with the IRS, in which the taxpayer settles for less than the total tax liability. To take advantage of discounted taxes through an OIC, call Insight Law. A tax attorney will review your current circumstances and determine whether you qualify. If you qualify, we provide experienced representation from a local tax lawyer to help you through the process.

Offers in Compromise Are Based on Inability to Pay

The IRS recognizes that it is often better to compromise and negotiate down to what the taxpayer can pay, rather than assign the total liability to Not Collectible status. An offer in compromise is typically based on the taxpayer’s inability to pay the amount owed. The IRS will examine your assets and liabilities, including your household expenses, and apply a formula to determine whether you could pay if the total liability is reduced. We will handle the negotiations with the IRS and work aggressively to help you settle for a tax liability that meets your needs. In addition to obtaining an offer in compromise, we can also work toward an installment payment plan that satisfies the IRS, as well as your personal financial situation.

What Conditions Will You Have to Meet to Qualify?

In order to qualify for consideration for an offer in compromise, the IRS places some strict requirements on the taxpayer, including:

  • Remaining current on annual tax filing and tax payments for five years from the date of acceptance of the OIC
  • Remaining current in paying estimated taxes or withholding taxes during the current tax year

Failing to meet these conditions will result in the IRS declaring you in default, and you may be charged in full for all taxes discounted in the negotiated settlement.

Do You Want More Information? Contact a Seattle IRS Settlement Lawyer

From offices in Seattle, Bellevue and Burien, our tax lawyer advises and represents clients in communities throughout King County, Pierce County and Snohomish County, Washington. Call us at 206-922-8078 or contact our office by e-mail to arrange an initial consultation with an experienced Seattle tax settlement attorney at our firm today.