When facing overwhelming tax debt, the thought of paying off the full amount can be daunting.
At McCauley Law Offices, P.C., we understand the burden and complexities associated with tax liabilities. That’s why we explore every avenue to find a viable solution for our clients.
One such option is an Offer in Compromise (OIC), which allows you to negotiate a reduced payment with the IRS. While the notion of settling for “pennies on the dollar” may be unrealistic, an OIC can provide significant relief. Our experienced team, located in Chester County, Pennsylvania, have successfully helped taxpayers nationwide navigate the OIC process.
Navigating the Offer In Compromise Process:
Obtaining an OIC agreement with the IRS is no simple task. The IRS will only consider an OIC if it believes collecting the full amount is unlikely. Moreover, determining the appropriate payment amount can be complex. Strict formulas are utilized to assess collectability, and submitting an offer that is too low will result in rejection.
At McCauley Law Offices, P.C., our skilled team has the necessary expertise to negotiate a fair and acceptable OIC. We are well-versed in the IRS’s evaluation process and understand how to position your case for the best possible outcome. Through meticulous preparation and a comprehensive analysis of your financial information—including income, assets, expenses, and liabilities—we craft a compelling offer that meets the IRS’s criteria.
While an OIC may be a viable option, we recognize that it may not be the ideal solution for everyone. Our lawyers conduct a thorough review of your financial situation and explore alternative tax resolution strategies. If there is a more favorable approach available, we will guide you accordingly.
A New Beginning:
Securing an OIC agreement is not the end of the road. Upon acceptance, certain obligations remain. In addition to making a lump-sum payment, you may be required to file and pay estimated taxes for the current year and the following five years. Compliance with these requirements is crucial to ensure the OIC remains in effect and your original tax debt is forgiven. Our attorneys will help you develop a comprehensive plan to fulfill these obligations and maintain your tax compliance.
A taxpayer faced an overwhelming tax liability of over $1.2 million, encompassing civil penalties from payroll tax liabilities and income tax debts accrued by their business. Despite their ongoing financial struggles, our firm conducted a comprehensive financial review and determined that the taxpayer was eligible for an offer in compromise with the IRS. After negotiations, the IRS agreed that settling the outstanding tax liability for just over $27,000 was in the best interest of both parties. With an offer in compromise, the taxpayer found a fresh start to financial freedom, significantly reducing their tax burden of over $1.2 million. If you are weighed down by substantial tax liabilities and believe an offer in compromise might be your best solution, contact McCauley Law office for guidance to explore the possibilities.