An “Offer-in-Compromise” or “OIC” allows a taxpayer to settle IRS debt with a one-time lump sum payment for an amount greater than zero but less than the total balance owed. Generally, for the IRS to accept an OIC, the amount offered has to equal or exceed the taxpayer’s “Reasonable Collection Potential” or “RCP”. The “RCP”, as calculated by the IRS, is the sum of the taxpayer’s net assets and the net of his monthly income less expenses multiplied by a factor of twelve. However, even if the amount offered is equal to or exceeds the taxpayer’s “RCP”, the IRS is under no obligation to accept it. The IRS only accepts OICs if it is deemed to be in the best interest of the Treasury (not the taxpayer). Approximately 1/3 of OICs submitted are accepted, 2/3 are rejected. Retaining representation experienced in preparing and negotiating Offers-in-Comprise can greatly increase the likelihood that your OIC will be accepted.
Tax Resolution Services, LLC representatives are trained and experienced in preparing and negotiating Offers-In-Compromise.