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â€oeTHE OIC”: Could Tax Settlement Be Just the Tax Relief You Need?

By: Tymon Hytem

If you are a taxpayer, delinquent in your tax liabilities to the IRS, then you may be aware of the “OIC”.  To clarify for those taxpayers with a past due IRS tax problem hovering over their heads, an “OIC” is the acronym for “Offer in Compromise”.  The Offer in Compromise program is the Internal Revenue Service’s way of acknowledging that some taxpayers simply will not ever be able to afford to remit their back taxes in full. The IRS is open to finding a way to “compromise” with the taxpayer to determine a reduced amount that will ultimately be “remitted” and be considered payment in full of the tax liability at hand.  This process allows the IRS to bring taxpayers back into good status and insure timely filing and payment of all future taxes. It also puts forth a better “public image” for this federal agency that historically has been viewed as a terrorizing collection agency working on behalf of our federal government.
The Offer in Compromise program represents a voluntary resolution of back tax liabilities.  It provides tax relief that is all encompassing to the delinquent taxpayer.  All back tax liabilities are settled with the amount of the reduced offer and this includes penalties and interest too.  If the taxpayer was facing threat of property/asset lien or a levy threat against bank accounts or wages, all these federal tax threats are released upon acceptance of the Offer in Compromise.  The Offer in Compromise Program is designed to provide a “fresh start” to the taxpayer.
While the Offer In Compromise program may sound almost too good to be true to an overburdened, stressed out delinquent taxpayer, it is comforting to know that the IRS actually accepts approximately 50% of all the Offers in Compromise filed with its office. The average amount accepted is currently 14 cents on the dollar.  That is the source of the increasingly well known catch phrase “settle your tax debt for pennies on the dollar”!  While the IRS is granting a large % of Offers, and the reduced tax debt settlements are both significant and impressive, there are nonetheless complex regulations and requirements to file this properly. 
In general, the offer filed is based on the taxpayer’s inability to pay.  There are complicated calculations and specific formats required to insure compliance in the filing of the Offer in Compromise. The overall financial position of the taxpayer is assessed, including their current financial circumstances and the equity in any assets.  It may be prudent to seek professional IRS tax debt settlement help as the acceptance of the offer by the IRS can be critical to the future financial health of a taxpayer.  Tax professionals are skilled at preparing IRS tax settlements for the Offer process and are current on all tax law changes in this area. 

Article Source: http://www.articlesnatch.com

About the Author:
Liv Worthington has worked in the debt management field for many years. She takes pride in helping all of her clients find the right IRS tax debt settlement help . If you have back tax debt, then it is important to consider tax debt settlement and find the right tax advisor to aid you in this process.

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