Offer in Compromise

filing-taxes

What is an Offer in Compromise?

An offer in compromise (or, “OIC”) is an option to resolve tax debt or debts based on either a financial inability to afford full payment or special circumstance. The three different types of offer in compromise proposals the IRS allows taxpayers to request are explained in further detail below:

OIC: Doubt as to Collectability

This is the most commonly filed and accepted type of OIC by taxpayers. Simply stated, if you can prove through disclosure of your financial information (assets, income, and monthly allowable expenses) that you cannot afford to pay the tax debt owed, the IRS could potentially agree to settle with you for the less than the full balance owed. Full financial disclosure is required in order to request and be granted approval this type of request to resolve your tax debt.

OIC: Effective Tax Administration

This type of OIC is filed when there are “special circumstances” in regard to your specific tax debt and personal situation. Perhaps this could be a serious medical issue, a natural disaster, or limited current/future income, which although you currently do have the ability to “full pay” what you owe, doing so would prevent you from a normal course of living in the future. Full financial disclosure is also required here, as well as specific information regarding your special circumstances.

OIC: Doubt as to Liability

This type of OIC is filed when you believe the IRS has incorrectly assessed a balance against you. Although financial disclosure is not required for this type of OIC because you are disputing whether or not the full amount is owed, you do need to provide evidence as to why you believe the balance is either inaccurate or incorrectly billed in order to gain approval for this type of OIC.

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Successful Resolutions

Liz C.
Liz C.
9 months ago
My experience with Ryan McFarland has been outstanding. His expertise was evident immediately when he asked all the right questions to understand my...
Head Of The Household B.
Head Of The Household B.
2 weeks ago
Hey everybody I just want to Let you know if you need Tax help, Ryan is awesome. I'm a small business owner. During this busy time I reached out to several...
George C.
George C.
5 months ago
I called Ryan with my tax situation. Initially I got his voicemail and left a message. Within a short time he returned my call. Ryan was very easy to talk...
Laurie Bishop
Laurie Bishop
a week ago
I just wanted to share my experience with Ryan. I am a small business owner, and we certainly took a hit this last year. It’s scary when you receive a letter from the IRS. I reached out to several tax attorneys with just a simple question. Ryan was very responsive and compassionate, All this during tax time when everybody’s super busy. Out of five different people Ryan was the only one that Actually responded and tried to help me. Ryan, I just want to say thank you so much for taking the time, I know you’re busy. Thank you again so much for all your help. I will be reaching out again if I need anything. You’re awesome. Laurie
Maurice Franklin
Maurice Franklin
9 months ago
I know how important reviews are because I rely on them just as much as you, so let me tell you about Ryan McFarland Law Offices. I was referred to Ryan by my neighbor when I described multiple tax issues I had with multiple state and federal agencies. Ryan gave me his full attention, listened to my speak, gave me detailed feedback on where my problems fit relative to the laws and demonstrated how he could bring me value and various solutions. He also educated me on my cases strengths and weaknesses and made recommendations all during our initial consultation. Based on what Ryan and I discussed during the consultation I was able to work to resolve the issue on my own, all the while Ryan rooted me on to success. For that he has earned my business whenever I or anyone I know needs an attorney. He put me first.
Jeffrey Johnson
Jeffrey Johnson
11 months ago
What else can I say, Ryan is awesome. He's helped me work through some challenging personal and business tax issues that required a ton of patience and diligence on his part and explained things every step of the way. Super helpful to have help from someone who understands the law and is able to make it comprehensible for someone like me.

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