Offer in Compromise Help You Can Count On

Owing a large tax debt can feel like being stranded in the ocean, fighting against a rising tide of penalties and threats to your very livelihood. But no matter how far in debt you are, there’s no reason to give up hope. Solutions like an IRS Offer in Compromise-Doubt As To Collectibility can be the lifesaver you’re looking for—a way to pull yourself out of the whirlpool and settle for as little as 10% of the total debt you owe. Why would the IRS do this, one might ask. The reason is simple, you no longer have the income, nor the assets, you once had that generated the large tax debt still due. So not everyone qualifies for a settlement. You might be somewhere between qualifying and not qualifying, but one thing is certain, there is some form of relief available.

The IRS and state tax agencies have strict guidelines to decide who qualifies for an Offer in Compromise based upon Doubt As To Collectibility. It’s a settlement agreement, based on your income, assets, and allowable living expenses. It’s all a matter of determining your collectability, and no one knows how to calculate that better than Lothamer. Knowing the rules is critical for successfully negotiating a settlement for less than what you owe and for one that you can afford to pay. It does no good to negotiate a 75% reduction if you are unable to pay it.

There are two other types of Offer in Compromises, and those are Offer in Compromise-Doubt As To Liability and Offer in Compromise-Effective Tax Administration.

Doubt as to Liability offers are based on a taxpayer’s contention that they either do not owe the tax they have been assessed or that the amount is incorrect. In order to qualify, the taxpayer must provide a written explanation as to why they do not owe the tax either in part or in full, and provide documentation supporting their position. This type of offer is generally filed when the statute of limitations for filing an amended tax return has expired.

Finally, Effective Tax Administrative offers are for those taxpayers that have equity in assets, the value of which is greater than the balance due the IRS. However, doing so would cause a financial hardship. An example might be an individual living on a fixed income of disability benefits whose home has been modified to accommodate their disability. If forced to sell their home to pay the IRS, it would cause them an undue financial hardship to purchase a new home and modify the new home to suit their medical needs.

Qualifying for an Offer in Compromise is less than half the battle. Preparing and negotiating a settlement is a tedious and complicated process that can take anywhere from six months to a year to complete. Trying to do it yourself is much like representing yourself in a criminal trial—Don’t do it! To give yourself the best chance of a favorable outcome, you need a trusted tax resolution specialist on your side.

At Lothamer Tax Resolution, we have a 93% acceptance rate for OIC settlements. We can tell you if you are a good candidate or not, and if not, there are other forms of relief available. Most importantly, let us help you take your life back. Put our expertise to work for you.