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Offers In Compromise: A Potential Solution To Your Tax Debt

If you or your business is struggling with a large tax debt, you may have the option of paying your debt while keeping up with your other financial obligations. An Offer in Compromise (OIC) is a way to settle your tax debt for less than the full amount due.

Dealing with tax debt can be very complicated, and the longer you take to pay it off, the more interest and penalties add to your outstanding balance. Any individual or business taxpayer with substantial tax liabilities needs to enlist the services of a skilled tax attorney at the earliest opportunity.

At Bucci Law Offices, we have more than 20 years of experience helping clients from around the world find successful resolutions to complex federal and state tax controversies. While you may believe that a payment plan may be in order for your situation, an 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 right for you.

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 OIC unless the taxpayer demonstrates one of the following:

  • Doubt as to liability, where the taxpayer shows that all or part of the tax assessed is incorrect; or
  • Doubt as to collectability, where the taxpayer is unable to pay the full amount; or
  • Special circumstances constituting economic hardship that would make the taxpayer unable to pay the full amount; or
  • Although the taxpayer can pay the full amount, it would be unfair or inequitable.

The IRS uses strict formulas to determine how much could reasonably be collected from your income, properties and other assets. In addition, any negotiated OIC amount must be payable either through a lump-sum payment or monthly payments for up to 24 months. The financial analysis is critical at this stage of the process. Let Bucci Law guide you through the intricacies of the labyrinth required to qualify for the relief of an Offer in Compromise.

IRS Offer in Compromise determinations are highly fact-specific. We know how the IRS is likely to evaluate your financial circumstances, and we know how to present your case to give you the best chance possible of having your offer accepted.

Aggressively Pursuing The Best Option For You

Our lawyers will thoroughly analyze your situation, evaluate potential choices and explain any other options available based on 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 online, or call 954-900-9107. With offices in Miami and Fort Lauderdale, we serve taxpayers across Florida, the United States, and internationally. Call us today to schedule a consultation.