Offer in Compromise (OIC)
An Offer In Compromise is an agreement between a taxpayer and the Internal Revenue Service (IRS) that resolves the taxpayer's tax liability. The IRS has the authority to settle, or compromise, federal tax liabilities by accepting less than full payment under certain circumstances.
Using an Enrolled Agent is the best option in dealing with IRS problems because Enrolled Agents focus on income taxes (CPAs and attorneys have a much broader focus than Enrolled Agents).
Don't fall for false, misleading claims. Many nationwide companies charge large upfront fees ($3,000 to $4,000) and claim to reduce your debts by 90%. However, this is true only in the rarest circumstances. These extreme testimonials are only used in online, TV, and print advertisements similar to those in infomercials. At Taxes PhD, we not only have no large upfront fees, we are a local business and will meet with you in person to solve your IRS problems. Most nation-wide companies have each representative serving far too many clients. This results in customers having difficulty contacting their representative and the representative has little time to spend on any single case. The end result is a big profit for that company and little gain for the customer. At Taxes PhD, we guarantee we will be thorough and act in your best interest.
Important Offer in Compromise Links
IRS form 656
Offer in Compromise
IRS form 433A
Collection Information Statement for Wage Earners and Self-Employed Individuals
IRS form 433B
Collection Information Statement for Businesses
IRS form 2848
Power of Attorney and Declaration of Representative