IRS Expands Offer in Compromise (OIC) Program to Cover More Taxpayers
The IRS has announced a new, streamlined Offer in Compromise Program that will cover a larger group of struggling taxpayers.

May 12, 2011 /24-7PressRelease/ -- We are often asked if you can really "settle with the IRS for pennies on the dollar". The answer is "sometimes....through a procedure called an Offer in Compromise".

What is an Offer in Compromise

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer's tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The OIC program also has many legal requirements that must be followed.

Those considering the OIC program should be cautious about certain promoters' claims that tax debts can be settled through the offer in compromise program without understanding the requirements for obtaining a settlement. Unfortunately, the OIC program is not a simple or easy process to navigate through on your own. The procedure is time consuming and involves a strong understanding of tax law and therefore, an experienced tax attorney should be consulted to advise you of whether or not you qualify for this program and guide you through it.

New Developments

A new, streamlined Offer in Compromise program was announced in February. The program extends a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.

This streamlined OIC program was expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less. Other taxpayers owing more than the $50,000 to the government and who make than $100,000 in income can still qualify for a settlement under the "non-streamlined" OIC program.

The OIC program is not the only way to resolve tax matters, but the extension of the streamlined program to more taxpayers makes it worthy of consideration.

Contact an experienced tax attorney to discuss your specific situation. The offer in compromise negotiation process is best handled by a tax lawyer. The streamlined OIC program offers a good opportunity to settle old tax liabilities. If you are interested in pursuing an offer in compromise, call a tax attorney for a consultation.

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