IRS Offer In Compromise 

If you are able to pay your tax debt in full, and an installment agreement is not an option, then the Offer in Compromise might be best option for you. An OIC is an agreement between you and the IRS or state that resolves your tax debt for less than the amount owed so you can achieve a reasonable tax settlement. If taxpayers can fully pay the liabilities through an installment agreement or other means, they, in general, won’t qualify for the OIC. So, the OIC should be used as a last resort when other options have been exhausted.

To qualify for an OIC, the taxpayer and his/her tax specialist must have filed all returns, made all required estimated tax payments as well as quarterly tax deposits, if applicable. In most cases, the IRS won’t accept an OIC unless the amount that the taxpayer can pay is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay, and includes value that can be realized from the taxpayer’s assets and anticipated future income.

Settle your Tax debt once and for all with the Offer in Compromise program by clicking here to set up a free consultation or call us at 833-836-6398

Tennex Tax Solutions, Tax Return Preparation, Sebastian, FL