At Murray Moyer, we help taxpayers navigate the complexities of resolving tax debts through the Offer in Compromise (OIC) program with the Internal Revenue Service (IRS). An OIC provides a pathway for individuals and businesses to settle their federal tax liabilities for less than the total amount owed, under specific conditions.
Our experienced tax attorneys are committed to guiding you through the OIC process, aiming to secure a settlement that reflects your financial reality.
Understanding the Offer in Compromise Program
An Offer in Compromise allows for the negotiation of tax debts when the full amount cannot be paid or when paying the full amount would cause financial hardship. The IRS considers OICs under three distinct grounds:
- Doubt as to Collectability: When there’s a genuine doubt that the tax amount owed can ever be fully collected.
- Doubt as to Liability: If there’s a legitimate dispute about the existence or amount of the correct tax debt under the law.
- Effective Tax Administration: When there’s no doubt as to the tax liability and collectability but requiring full payment would either create an economic hardship or be unfair and inequitable due to exceptional circumstances.
Eligibility Criteria
To be eligible for an OIC, taxpayers must meet the following criteria:
- Up-to-date on all tax filing and payment requirements.
- Not currently in bankruptcy proceedings.
- Able to offer a reasonable amount based on their current financial situation.
The OIC Pre-Filing Process: Ability to Pay Analysis
Importance of Financial Analysis
A critical step in the OIC process is the detailed examination of the taxpayer’s financial situation, known as the “ability to pay” analysis. This analysis is essential for:
- Determining the feasibility of an OIC based on your income, expenses, and asset equity.
- Establishing the offer amount that reflects the maximum the IRS can expect to collect within a reasonable period.
How Murray Moyer Can Assist
Our firm assists clients with the entire OIC process, including:
- Comprehensive Financial Review: We conduct a thorough analysis of your financial situation to accurately determine the offer amount that reflects your ability to pay.
- Application Preparation: Our attorneys guide you through the complex process of compiling and submitting the OIC application, ensuring accuracy and compliance with IRS requirements.
- Negotiation with the IRS: We represent you in all negotiations with the IRS, leveraging our expertise to advocate for a favorable resolution.
- Compliance and Follow-up: Our team ensures that you remain compliant with all IRS filing and payment requirements throughout the process and helps manage any post-acceptance obligations.
Why Choose Murray Moyer
With a deep understanding of IRS policies and the OIC program, Murray Moyer stands ready to provide legal representation to taxpayers seeking relief from overwhelming tax debts. Our approach is tailored to each client’s unique financial situation, ensuring the best possible outcome while minimizing the stress and uncertainty of tax debt resolution.
If you’re struggling with federal tax liabilities and believe an Offer in Compromise could be the solution, contact Murray Moyer today. Our dedicated team of tax attorneys is here to help you navigate this complex process, from initial eligibility assessment to final settlement. Let us work towards achieving a fresh start for your financial future.