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Offers In Compromise: A Potential Solution To Your Tax Debt

Dealing with tax debt can be very complicated, and the longer it takes you to pay it off, the more interest and penalties add to your outstanding balance. If you or your business is struggling with a large tax debt, a skilled tax attorney can help you explore your options.

At Bucci Law Offices, we have been helping clients from around the world find successful resolutions to complex federal and state tax controversies for more than 18 years. While you may believe that a payment plan may be in order for your situation, an offer in compromise (OIC) may allow you to settle your tax debt for less than the full amount due.

Let us evaluate your unique financial circumstances and help you determine whether an OIC is best for your situation.

Discharging Your Debt For Less Than You Owe With An OIC

In certain circumstances, the IRS may agree to an offer in compromise — an agreement to discharge tax debt in exchange for a payment that is less than the full amount owed. These agreements are often hard to obtain, but our experienced tax attorney has insight into the most challenging tax disputes and offers the strong negotiating skills needed to resolve your complex tax issue.

The IRS will not agree to an offer in compromise unless there are:

  • Doubts about its ability to collect payment from you
  • Doubts about your tax liability
  • Doubts that collecting the full debt would place you under economic hardship or would be unfair or inequitable

During the intense negotiating process, the amount offered cannot be less than what the IRS deems to be your reasonable collection potential (RCP). Your RCP is how the IRS measures your ability to pay and includes the value that can be gained from your various assets. It also includes anticipated future income, less certain amounts allowed for basic living expenses. In addition, any negotiated OIC amount must be payable either through one lump-sum payment or through a payment agreement.

IRS offer in compromise determinations are highly fact-specific. At Bucci Law Offices, we know how the IRS is likely to evaluate your financial circumstances, and we know how to present your case so you have the best chance possible of having your offer accepted.

Aggressively Pursuing The Best Option For You

At Bucci Law Offices, if we do not believe you qualify for an OIC, we will tell you. Our lawyers will thoroughly analyze your situation, evaluate potential choices and explain any other options available in your unique circumstances — like installment agreements — that may allow you to partially pay your debt or pay your debt over time.

For more information about our services, and to find out if an offer in compromise is right for you, Contact Bucci Law Offices, or call 305-340-2275 in Miami, 954-900-9107 in Fort Lauderdale, or toll free at 800-743-4263. We handle cases worldwide. Call us today to schedule a consultation.