Most frequently asked Questions with the Answer
Who qualifies for an Offer in Compromise? You are a candidate for an Offer if your liabilities exceed your net assets and you don't have the earning(s) potential to pay the tax bill over time-also, anyone who could show paying the tax bill would cause an economic hardship.
Once I qualify for an Offer in Compromise [OIC], how long before it's settled?
Usually it will take anywhere from (6) to (9) months from the initial processing of the offer to receipt of IRS acceptance letter. Don't let anyone else fool you and tell you that it can be done much sooner than six months
Would there be any requirements I need to follow with the IRS once my case is settled?
Yes, you must keep in compliance and pay your taxes on time for the next (5) years in order for your case settlement to be fully accepted.
Currently I am paying the IRS each month. Can I still make an Offer?
Yes, under certain circumstances. Financial hardship would more than likely qualify you for an OIC.
Do I stop making the current monthly payment?
No, you are required to make installment payments during the time the Offer is investigated. Unfortunately, not only do you need to pay until the time the Offer is accepted, but none of these monies will be applied to your settlement Offer.
What will happen if for any reason I fail to pay the Offer or default on
paying any tax due during the next five years, once the Offer is accepted?
Not very good, Charlie! The IRS can apply all amounts previously received from you under the Offer against the original amount of the liability compromised, plus assess and collect by levy or suit the balance of the original liability. No, not very good!
I've been out of the system and avoiding the IRS for over ten years now.
Is it too late to get back into compliance and make a fresh start?
There has never been a better time to come "clean" with the IRS. Under pressure from Congress and the Public, the IRS has loosened up a bit on its requirements for getting relief from back taxes. However, we must caution that we are not sure how long this good thing will last. This is all the more reason now to get back on track! Your chances are very good. Also, at this time, it seems the IRS is more interested and focused in getting non-filing taxpayers back into the system.
These are just a few of the many questions most commonly asked. Should you have any further questions, feel free to contact us.
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