The Advantages of Having an Attorney Prepare Your OIC

If you owe a tax debt to the IRS that you don’t think you can pay, you have options. One common way to reduce an outstanding tax bill is by seeking an Offer in Compromise (OIC) with the IRS. If you have an attorney prepare your OIC for you, it can increase the chances of a favorable outcome.

What Is an Offer in Compromise?

An Offer in Compromise (OIC) is a deal you negotiate with the IRS to reduce your tax bill. You make an offer to the IRS, and if it’s accepted, you will only have to pay a portion of your tax debt. Typically, you seek an OIC when you doubt you’ll be able to pay your entire tax bill.

Once you’ve submitted an OIC, the IRS must agree to it. There are 3 official grounds upon which the IRS will accept an Offer in Compromise:

• Doubt as to liability – if there is a genuine dispute regarding the tax you owe
• Doubt as to collectibility – if your tax liability exceeds your ability to pay it
• Effective Tax Administration – if you have extenuating circumstances that make paying your tax liability untenable or unjust

Reasons to Hire a Tax Attorney for Your OIC

Sending an offer to the IRS isn’t so straightforward. You’ll have to consider your assets, income, expenses, and overall ability to pay when creating your offer—there’s a great deal to consider. If you want the IRS to accept your OIC and succeed at lowering your tax debt, it helps to have a tax attorney prepare your OIC for you for several reasons.

• Qualifying for OIC: If you don’t currently qualify for an OIC, a tax attorney can help you get everything ready. You’ll need to have filed all necessary tax returns, not be in bankruptcy proceedings, and submit all required documents.
• Getting the “best” offer possible: Working with a tax attorney can help increase the chances your offer gets accepted by the IRS. They’ll have a good idea of the lowest amount the IRS is willing to accept in your situation.
• You have to file an appeal: The IRS rejects 60 percent of OICs it receives. You can appeal a rejection, but you need an attorney to initiate the process and argue on your behalf in tax court.

Hire a Reliable Tax Attorney for Your OIC

If you think an OIC might be the best option for your tax situation, our Maryland tax attorneys can help. We help taxpayers in Baltimore, Columbia, Frederick, and Rockville, and we’re ready to discuss your tax situation with you. Call Gabaie & Associates, LLC at (410) 358-1500 or send us your information via our online form.