An Offer in Compromise (OIC) is an agreement made with the IRS that settles your tax debt for less than the full amount you owe. An OIC can be a powerful way to reduce your tax debt to something you can manage. Offering an acceptable offer in compromise requires loads of work to find the magic number that takes the following basic criteria into consideration:
- What you can pay
- What the IRS will accept
- What your situation and circumstances allow
- The value of your assets
In fact, finding the right offer in compromise for your situation can be frustrating. Up to 95% of initial offers in compromise end in rejection.
Do the approximately one million Americans buried in IRS debt need any more bad news? Fortunately, the chances of the IRS accepting your offer are significantly higher when you take the time to research and document every claimed expense. This process requires a great deal of time. Why do so many offers in compromise get denied? Most offers that are rejected simply don’t take all the necessary factors into account.
The #1 Offer in Compromise Denial Factor
Almost all offers in compromise that are submitted get denied due to lack of supporting documentation. The law that specifies what constitutes an acceptable offer in compromise is quite vague. If you or the tax company you choose do an incomplete job of preparation and/or documentation, you can expect your offer to be rejected.
All too often, we have found that tax resolution companies do not perform their due diligence to ensure they are submitting a complete offer in compromise with all the necessary supporting documentation. For instance, in numerous cases, the company did not supply the supporting proof for monthly expenses. Therefore, when the IRS objects to these expenses, the company refuses to fight back to get them approved for their client. It’s much simpler to accept the IRS counter offer and avoid the extra effort required to justify the expenses in question.
Moreover, other tax resolution companies state a fair initial fee for filing your offer in compromise, then do a poor job preparing it, knowing it will garner a rejection. Then the hapless client is informed that additional charges will be incurred to complete the appeals process and its necessary documentation.
Choose a Tax Company that will Fight For You
Due to the high initial rejection rate for offers in compromise, you should choose a tax resolution company that will fight for you throughout the appeals process, and without charging you unexpected fees. The tax resolution specialists at Reliance Tax Group will comb through your paperwork line by line with the IRS to ensure everything necessary for a successful appeal is included. We will demand real answers from the IRS in order to formulate an offer in compromise they will accept.
When we agree to file your offer in compromise, our fee covers the entire process including appeals. We are the tax team you can rely on to be your advocates until your offer in compromise is accepted by the IRS. No surprises. No extra fees. Ever. Call Reliance Tax Group today at 877-223-1662 or fill out the online contact form to schedule your free consultation.