As a tax professional, your expertise in navigating complex tax scenarios is essential to the success and satisfaction of your clients. One valuable strategy for those struggling with tax debts is the utilization of Offers in Compromise (OIC). By mastering the nuances of this powerful tool, you can greatly enhance your clients’ financial outlook and provide them with a viable path to tax resolution. In this comprehensive article, we will explore the ins and outs of Offers in Compromise, delving into the process, requirements, and best practices to effectively help your clients achieve a favorable outcome. Enhance your tax resolution practice by becoming well-versed in OIC strategies and provide much-needed relief to your clients.
Want to be a hero? File an Offers in Compromise (OIC) on behalf of your clients owing money to the IRS. An OIC means a fresh start— music to the ears of anyone dealing with a delinquent tax bill.
An OIC is a back tax payment option offered by the IRS. It allows a taxpayer to catch up and settle their debt for less than what is owed, sometimes much less.
Who is an OIC Candidate?
The Offer in Compromise is a great option for taxpayers who are overwhelmed or unable to pay their tax bills. On one hand, it offers relief by giving them a fresh start with the IRS. On the other hand, the real goal of an OIC is to bring forth a legal agreement for payment that is in the best interest of both parties. The taxpayer is given a break without entirely shirking their responsibility to pay, and the IRS gets to put something in its pocket.
3 Grounds for an OIC
There are 3 grounds for submitting an offer in compromise.
- The 1st is doubt as to collectability. This is when the taxpayer is financially unable to pay their full tax debt.
- The 2nd is doubt as to liability. This occurs when the tax debt has been assessed in error or the assumed amount of debt is incorrect.
- The 3rd ground for an OIC is effective tax administration. In this case, the taxpayer is able to pay something, but paying the full amount of the debt would either cause economic hardship or would be considered unfair because of exceptional circumstances.
It goes without saying that helping your tax-delinquent clients submit an OIC is definitely beneficial to them. But it can be lucrative for you, the tax pro. There is no OIC season. You can submit anytime, which helps balance your income generation year round.
Close to 32 million taxpayers are expected to owe tax in 2019. It’s likely that some will be your clients. Are you unsure of how to go head to head with the IRS? You don’t have to face IRS dealings unsupported. We’re here for you.
How IRS Solutions Can Help You with Offers in Compromise
IRS Solutions Software gives you the confidence to provide services you may have been uncomfortable with in the past. Another benefit of membership is the training you get on our monthly case study calls.
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