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Offer in Compromise | IRS Tax Liability Settlement

An Offer in Compromise (OIC) is a settlement agreement between the IRS and the taxpayer. The IRS will accept a lower payment in lieu of your tax liability based on their calculations on your ability to pay the amount due.

Who is eligible for an Offer in Compromise?
Any taxpayer with a tax liability in eligible for an Offer in Compromise. There is no guarantee that the IRS will accept an OIC, but if you can prove that meeting your tax liability will be difficult, if not impossible, you have a good chance of having your OIC approved. The IRS will look at whether your expenses are so high relative to your income, that collecting the tax liability will be in doubt. 

How much will the IRS accept as a part of my Offer in Compromise?
The IRS does not have a set amount they will accept for OICs, rather, each case will be evaluated individually. They will factor in your current income, expenses, assets, and other liabilities. The settlement amount may be drastically lower than your original tax liability.

What is my first step towards an Offer in Compromise?
You must first make sure you are current with all tax filings. After that, you would work with your attorney/ tax professional to make sure your pre-qualify for an Offer in Compromise, before putting together your offer with all supporting forms and payments. 
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  • Drason Law Firm
  • Practice Areas
    • Individual Legal Services
    • Business/Corporate Law >
      • How can we help your Company?
      • Benefits of Incorporating
      • Franchise Purchases | Agreements
      • Incorporating | S-Corp | C-Corp | LLC >
        • Bylaws
        • LLC Operating Agreement
        • Independent Contractor | Incorporation Benefits
      • Social Purpose Corporation (Previously: Flexible Purpose Corporation)
      • Converting Corporation to LLC | Converting LLC to Corporation
      • Professional Corporations
      • Negotiations | Business & Commercial
      • Partnerships | Partnership Agreements
      • Business Dissolution
      • Dispute Resolution | Disagreement
      • Buy-Sell Agreements
    • Small Businesses >
      • Small Business Contract Lawyers
    • Contracts >
      • Software Agreements
      • SaaS Agreements (Software as a Service)
      • Software Agreement Disputes
      • Contract Attorneys
      • Contract Breach & Disputes
      • Contract Litigation
      • Contract Review Service
      • Small Business Contract Lawyers
      • Negotiations | Business & Commercial
      • Commercial Lease
      • Buy-Sell Agreements
      • Business Purchases and Sale Agreements
    • Litigation | Lawsuits >
      • Business Litigation
      • Fraud Litigation
      • Contract Litigation
      • Civil Litigation
      • Personal Injury | Auto-Accidents >
        • Auto Accident Injury
        • Slip & Fall Injury
        • Construction Injury
        • Pedestrian Injury
    • Arbitration >
      • Arbitration Lawyer | Arbitration Process
    • Startups >
      • Why should StartUps Hire their own Lawyers
      • Founder | Co-Founders Agreement
      • Shareholder Agreement
      • C-Corp | Venture Capital
      • Startup Stocks | Authorized Shares
      • Convertible Equity
    • Tax Law >
      • 1031 Exchange Help
      • Offer in Compromise (IRS Tax Liabilty Settlement)
      • Removing a Bank Levy by the IRS
      • Hotel/Motel Tax Lawyer
      • Sales Tax Appeal | California Sales Tax Appeal
  • Contact Us
    • Phone Consultation
    • Book an Appointment
  • Blog
    • California Codes