Tampa Offer in Compromise Attorney

Tampa Offer in Compromise Lawyer

It is stressful to owe significant taxes to the IRS (Internal Revenue Service). Any taxpayer can find themselves suddenly behind on their tax payments due to personal emergencies and sudden financial crises. These unpaid taxes only increase in value from penalties and interest if you try to avoid dealing with them. When you have more tax debt than you can reasonably pay back, you need to talk with Tampa IRS tax attorneys.

Applying for an offer in compromise (OIC) can pause any collection actions you are facing and could potentially clear your entire tax debt for a lesser value. A qualified and seasoned tax law attorney can help you review this and other options for negotiating your tax debt.

Tax Smith Tax Attorneys Can Help You

The team at Tax Smith Tax Attorneys has decades of collective tax law experience and has negotiated with the IRS for many taxpayers in the Tampa area and surrounding communities. We can review your unique financial circumstances and tax liability, and present you with your options for settling that debt, such as through payment plans, penalty abatement, or an OIC. We understand how frustrating tax issues are, and we want to help you get the new start and financial security that you need.

What Is an Offer in Compromise in Tampa?

An OIC is a program with the IRS that allows you to pay back your unpaid taxes and tax debt for less than what you owe. An OIC is an incredibly beneficial method for taxpayers to settle their debt, although you must consider other forms of settling the debt first, such as a payment plan. Applying for an OIC may be a good option for you and is more likely to be accepted if you meet one of the following criteria:

1. Doubt as to Liability: If there is a legitimate uncertainty or dispute about whether you are actually liable for the tax debt or the entirety of the tax debt, this may be sufficient ground for an OIC settlement. There may be issues with a stolen or mistaken identity, or you may believe you have already paid the debt.
2. Doubt as to Collectability: An OIC may be possible if there is genuine doubt that you are able to pay the full tax debt or if the collection of the full amount will cause you undue financial hardship or would be otherwise unfair. You may be able to show that your assets and income are insufficient to cover the tax liability.
3. Efficient Tax Administration: The IRS may also accept an OIC settlement if acceptance would further the effective administration of the agency under federal law. If the IRS is not able to recover the full amount, settling for a lower amount means the agency would at least recover some of what it is owed.

You have the burden of proof to show that one of these circumstances exists. An attorney can review your financial and other circumstances to determine if you are eligible for an OIC.

If you are eligible for an OIC and can successfully secure an OIC settlement, then you can repay your entire tax liability over a period of time for less than you owe. This can protect your financial future and enable you to get a fresh start in Tampa.

Applying for an Offer in Compromise

When you apply for an OIC, you send the IRS an offer of a potential settlement. If the IRS accepts this settlement, then this offer becomes your new tax liability.

In addition to meeting the prior criteria, you are eligible to apply for an OIC if you:

• Have filed all tax returns and estimated payments
• Are not in an open bankruptcy proceeding
• Have a valid extension for the current tax return if that is the year you are applying for
• Are an employer and have made tax deposits for the past two quarters and the current quarter prior to applying

Your application will have selected either a lump sum or periodic payment OIC, providing the first portion of that payment. You must pay off the remaining balance in the set period of time. Once you do, your tax debt will be considered to be paid in full.

FAQs About Tampa, FL Offer in Compromise Law

How Much Does an Offer in Compromise Cost?

The fee to apply for an OIC is $205. You must also pay the first part of your OIC settlement. This amount varies depending on the type of OIC payment you are applying for and the amount of that payment. If you are applying for a lump sum OIC, then you must send 20% of the total lump sum you are requesting to settle for. If you are applying for an installment OIC, then you must send the first monthly payment.

What Is a Reasonable Offer for an Offer in Compromise?

What a reasonable offer for an OIC will be entirely different from person to person, depending on factors such as the amount of taxes you owe, your income, your expenses, your assets, and other relevant financial information. An attorney can help you make a fair and reasonable offer in your OIC application. If the settlement you offer is insufficient, but the IRS finds an OIC settlement in general to be acceptable, then the agency will send back a counteroffer.

What Is the Downside of an Offer in Compromise?

The downside of an OIC is that it is very difficult to get accepted, and if you are accepted, you must pay back the OIC settlement in a short period of time. These payments must be made in a relatively short time period, depending on the type of OIC. For some taxpayers, this timeline and the amount they owe is still a financial burden and will be difficult or impossible to pay. Working with an attorney helps you find a reasonable settlement that you can pay.

How Hard Is It to Get an Offer in Compromise?

It is hard to secure an OIC with the IRS, and the agency accepts few of the offers made. In 2023, the IRS accepted 12,711 of the 30,163 proposed OIC settlements, resulting in an acceptance rate of 42.14%. This is higher than it has been in past years. You are more likely to be successful in securing an OIC if you are certain you are eligible, provide proof of eligibility, and work with an attorney on your application.

Contact Tax Smith Tax Attorneys

If you want to apply for an OIC or another method of settling your tax debt, contact Tax Smith Tax Attorneys and see what options you have.