IRS Offer in Compromise Is A Process, Get Help From A Tax Lawyer

As obtaining a successful Offer in Compromise can be a lengthy and complex process, it should not be attempted with out the help of an experienced IRS Tax Lawyer. However the rewards of a successful OIC are worth the effort because with the IRS's acceptance on the taxpayers offer the delinquent taxpayer may only have to pay the IRS a greatly reduced amount from the original tax liability.

The Offer In Compromise program is not charity from the IRS for the taxpayer's behalf, it's a cold calculated business decision from the IRS to ensure they are able to obtain funds before any statute of limitations runs out, the taxpayer dies or any number of reasons that could prevent the IRS from ever seeing a penny. As such if the taxpayer's attorney must follow the offer in compromise program guidelines and put together a realistic offer as well has show the taxpayer has a legitimate reason that they cannot pay, and may not every be able to the amount owed. If the Tax Lawyer is successful in documenting this the IRS would see it is in their interest to accept less than the total tax liability owed.

Because the IRS is such a large and cumbersome organization even with the aide of a skilled tax lawyer it may still take between 10 to 24 months to complete the full OIC process to fruition. However this lengthy period does have some benefit for the taxpayer as the IRS will suspend collection efforts during the period of the negotiation.

Below is a general outline of the steps that occur during the offer in compromise process:

Phase 1 - Your Tax Lawyer Must Plan, Prepare and Submit the Offer

Our Tax Attorneys review your case to determine whether you qualify for an Offer in Compromise, and on what terms. Upon completing our Offer in Compromise analysis our attorneys prepare and submit the Offer in Compromise package to the IRS. Our tax attorneys will also advise your about all aspects of the Offer in Compromise process.

Phase 2 - After Receiving Your Offer The IRS Will Request More Information

Initially the IRS will determine if the offer your tax attorney has prepared meets all of the OIC program requirements. If the IRS finds the offer satisfies all the guidelines they will next ask for proof of the taxpayers financial condition. It will be important to work with your attorney to provide a consistent and accurate documentation to backup the statements made during the initial offer submission.

Phase 3 - Your Financial Documentation Will Be Reviewed By The IRS

At this point the representative form the IRS will review your provided financial documents and decide if they are going to accept your offer. The IRS will also have to make a decision on how much they are willing to accept, a skilled tax attorney should be able to keep the amount as low as possible withing the OIC guidelines.

Phase 4 - Negotiations Begin Between the IRS and Your Tax Lawyer

At this point the IRS may put forth a counter offer that is beyond the reach of the taxpayer. It will be up to the skill of your attorney to negotiate the amount down to an amount the taxpayer can actually afford to pay. It will pay to have hired an experienced tax lawyer, who can successfully negotiate with the IRS representatives.

Phase 5 - Offer In Compromise Rejections Get An Appeal

Negotiations sometimes need to get tough before they get easy. It may be the case that the IRS thinks your offer is too low and unreasonably rejects the offer. If this happens do not dis pare our tax lawyer will begin the appeals process and continue to negotiate. The longer the negotiation process continues the more time before the IRS will get paid and the more time the taxpayer has before they will need to begin payment on any successful tax debt settlement.

Phase 6 - Make Payments On Your Accepted Offer

Should the taxpayer successfully get the offer in compromise completed it's essential that the taxpayer makes all the scheduled payments ON TIME. Even a small slip-up can render the OIC agreement null and void causing the taxpayer to own the original amount all over again.

About the Author

As a dedicated IRS Tax Lawyer Mary has been helping clients get tax debt relief by negotiating currently non-collectible status, offers in compromise, installment agreements, innocent spouse cases, audits, removing levies, releasing liens, and negotiating penalty abatement. Mary's career as a IRS tax attorney began in 1993 after graduating from Stetson University College of Law. She graduated

Author (getmejustice). Submitted on Wed, 3 Aug 2011 Time: 3:49 AM

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