If you are able to pay your tax debt in full, and an installment agreement is not an option, then the Offer in Compromise might be best option for you. An OIC is an agreement between you and the IRS or state that resolves your tax debt for less than the amount owed so you can achieve a reasonable tax settlement. If taxpayers can fully pay the liabilities through an installment agreement or other means, they, in general, won’t qualify for the OIC. So, the OIC should be used as a last resort when other options have been exhausted.

To qualify for an OIC, the taxpayer and his/her tax specialist must have filed all returns, made all required estimated tax payments as well as quarterly tax deposits, if applicable. In most cases, the IRS won’t accept an OIC unless the amount that the taxpayer can pay is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay, and includes value that can be realized from the taxpayer’s assets and anticipated future income.

Settle your Tax debt once and for all with the Offer in Compromise program.

A tax debt can be legally compromised for any of the following reasons:

  • Doubt as to liability: doubt exists that the assessed tax is correct
  • Doubt as to collectibility: doubt exists that you could ever pay the full amount of tax owed
  • Effective tax administration: there is doubt that the tax is correct, and no doubt that the amount owed could be collected, but an exceptional circumstance exists that allows the IRS to consider a taxpayer’s OIC

If the Creative Tax Solutions team can prove that you qualify for the OIC program, you will hopefully be able to decrease owed dollars in taxes, penalties and interest. It is important to note that many non-tax professionals do not have the know-how to process an OIC correctly, as many forms are filled out incorrectly or, once processed, they are rejected. To resolve the matter as efficiently and quickly as possible, it is the best idea to seek a team who has successfully secured several OIC programs on their clients’ behalf.

Creative Tax Solutions’ OIC tax services

If you are unable to pay your monthly installments to the IRS, you should consider applying for an Offer in Compromise. The OIC tax settlement program allows you to reach a settlement with the IRS resulting in you paying a lesser amount. Our experienced tax specialists can help you to determine whether you are qualified for this reduction plan.

Tax debt compromise program for you

In order to qualify for this program, you must have filed all of your returns and completed all quarterly tax deposits. If your amount owed to the IRS is less than your reasonable income potential (RCP), you will be not qualified for the program. The RCP is how the IRS determines your ability to repay tax debt. It includes the value of your assets and current salary. Your debt can be reduced under the following circumstances:

  • there exists a reasonable doubt as to the accuracy of the IRS’s debt assessment;
  • the taxpayer is unable or will never be able to repay the full amount;
  • circumstances exist that allow the IRS to consider your request.

If you fall under the above criteria, you may be qualified for an Offer in Compromise that can protect you from tax liens, levies, and wage garnishments.   

Tax offer in compromise assistance from CTS

Creative Tax Solutions can help you prove that you qualify for the Offer in Compromise program, allowing you to decrease your debt, remove liens on your property, and lower your penalties and interest. Do not try to do this on your own. Filling out forms incorrectly can result in your request being rejected. In order not to end up empty-handed, hire a team of experts who can negotiate with the IRS on your behalf.

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