Offer In Compromise (OIC)

If you or someone you know owes the IRS money I’m sure you’ve heard the term “offer in compromise”. While this is not the only solution to solve your IRS problems, it certainly is the most common approach. An offer in compromise is basically an agreement between the tax payer and the IRS that settles the tax payers’ debt for less than the amount owed. How much less highly depends on the unique financial circumstances for the individual applying. The key element of this agreement to understand is that negotiation is everything and who you hire to negotiate your IRS debt will directly show in the outcome of your agreement. It is not recommended for a tax payer who is in debt to attempt to negotiate an offer in compromise by themselves; there are many legal and industry terms thrown around that are designed to confuse the average consumer.

There are currently hundreds of websites circulating across the internet that claim to help individuals negotiate an offer in compromise with the IRS. On top of that, they also claim to have the ability to negotiate your IRS debt down to a few pennies on the dollar. Consumers should not trust any company that claims to settle your debt for (X) amount of dollars before even seeing your required documentation. As stated above, any offer in compromise negotiation is done on a case by case basis. There are many factors that come into play when negotiating your debt such as your income, assets (property, bank accounts, etc), and basically what your ability is to pay back the debt. For these reasons, no company can reasonably promise you anything without first reviewing your unique case. When choosing a firm to help alleviate your IRS debt, it is important not to base your decision solely on the lowest price; the money you will save by picking the right firm will usually more than pay for itself.

When you do decide to hire a company to negotiate your IRS debt it’s important to check its credentials and make sure it has attorneys on staff. Having an attorney involved during the negotiation process will greatly improve your chances of having a positive outcome (i.e. pay back less money). As state laws are always changing and being revised, it is a good idea to hire someone who has extensive knowledge of the laws governing your unique situation. If you need assistance in solving your IRS tax problems contact the CreditLawGroup today at (800) 284-2548.