Offer In Compromise
The Offer in compromise (also referred to as “OIC”) is an IRS instrument created in 1992 by Section 7122 of the Tax Code. Two primary grounds under which an OIC can be successfully negotiated with the IRS are: “doubt as to collectibility” (the taxpayer is unable to pay the full burden), or “doubt as to liability” (the taxpayer argues that they do not owe the tax debt). A third ground for acceptance is “effective tax administration” (the IRS wants to get as much as they can from a taxpayer). For an Offer in Compromise to be accepted, however, the taxpayer has the burden of proof that they either have no possible means of paying the tax or that they do not actually owe the tax.
If you need information and guidance regarding your tax debt relief options, we encourage you to schedule an appointment with a tax attorney at Conley Law Practice, LLC. Call us locally at 610-524-3200 or send us an e-mail today.