An offer in compromise (OIC) is an agreement between you and the Internal Revenue Service (IRS) that allows you to settle your outstanding federal tax liability for less than the amount you owe. If you are unable to pay the full amount of your tax liability, or if doing so would create a “financial hardship,” then the IRS may accept payment of a minimal amount to eliminate your total outstanding debt, depending on your individually evaluated circumstances. Your case is evaluated based on the “unique facts and circumstances” of your position and economic circumstances. Some facts that may be considered include your income, expenses, ability to pay, and asset equity. Connecticut tax attorney Raymond J. Muratori can assist in finding you a narrative that may increase your potential to qualify for an offer in compromise with the IRS.
In order to submit an offer in compromise to the IRS, there is a complicated and exhaustive process that you must follow. There are several forms that need to be filled out, as well as application fees and detailed financial information and documentation that must be collected. In addition, there are three conditions, at least one of which you must meet, in order to qualify for an offer in compromise: Doubt as to Liability, Doubt as to Collectability, or Effective Tax Administration. A compromise is more likely to be accepted if it benefits both you and the government. Payment of an accepted offer can either be in one lump sum or periodic payments directly to the IRS. It is important that, after an offer is accepted, you pay the reduced amount in a timely manner.
You, as a taxpayer, are not guaranteed to have your federal tax liability reduced through an offer in compromise. It is entirely a matter of government discretion; however, if your offer is rejected, you may take the matter to the IRS Appeals Office. It is to your benefit to have a knowledgeable tax attorney assist you in the complicated process of filing an offer in compromise. Mr. Muratori understands how important an offer in compromise may be to the financial circumstances of some clients. In light of this, he will work carefully and tirelessly to find a way to succeed.
Connecticut tax attorney Raymond J. Muratori focuses his practice primarily on the many areas of tax law, including offers in compromise. As well as being a licensed attorney, Mr. Muratori is also a licensed CPA. He has worked as a tax professional for over 25 years, and his knowledge and experience in federal and Connecticut tax law can assist clients interested in offers in compromise. Contact Raymond J. Muratori, Attorney at Law, at 860-388-3599 to schedule a consultation to discuss and execute the tax strategy that will fit best for your individual situation.