Venice Offer in Compromise Attorney

Venice Offer in Compromise Lawyer

An offer in compromise is an incredibly useful tool for resolving your debt with the Internal Revenue Service (IRS) for less than you owe. While these can be very helpful, they are not easy to get. A Venice offer in compromise attorney can assess if you qualify for an offer in compromise (OIC) and whether you are likely to be approved. They can help you create a reasonable offer and negotiate with the IRS.

Hire an Offer in Compromise Attorney With TaxSmith, LLC

When you get legal guidance for your tax issue, you need to work with effective and exceptional attorneys. At TaxSmith, LLC, our team has helped taxpayers navigate complex tax debt issues for over a decade. We know how frustrating it can be to have debt you can’t repay, especially when the IRS begins taking collection actions. An OIC is a fantastic way to get a fresh start if you qualify and can establish the first steps to getting back in good standing with the IRS.

Our attorneys understand that tax issues can be complex, and we want to help make them as transparent and simple as possible. Let us help you assess your debt settlement options.

Debt Settlement Options Before an Offer in Compromise

In 2024, the IRS assessed millions of civil penalties totaling over $84 billion. Penalties accrue interest, and some are assessed multiple times. This means that a tax debt can grow significantly over time, even for minor errors like information discrepancies.

When you owe the IRS or the Florida Department of Revenue (DOR), you usually have to pay that debt in full. However, if you can’t financially do this, there may be other options.

An OIC is one of those options, but it cannot be your first option. You first have to review other debt settlement methods, like an installment agreement or Currently Not Collectible status. You can negotiate with the IRS at its Taxpayer Assistance Center in Sarasota. An attorney can represent you in these negotiations.

Qualifying for an Offer in Compromise in Venice

The IRS might accept an OIC if one of the following can be proven:

1. There is doubt that you are liable for the stated tax debt
2. There is doubt that the IRS can collect the full tax debt because your income and assets are less than the liability
3. Accepting the OIC is considered good tax administration, as requiring full payment if the debt would be unfair or cause an economic hardship

There are other qualifications for applying for an OIC, such as filing all required taxes and not being in an active bankruptcy proceeding.

If you can secure an OIC, you can resolve your entire tax liability for less. You can either pay it in a lump sum or in periodic amounts. Once the payment is completed, the remaining debt is cleared.

FAQs About Venice, FL, Offer in Compromise Law

How Much Does It Cost to File an Offer in Compromise?

To file an offer in compromise, there is a nonrefundable application fee of $205, as well as the first part of your payment. This payment is either 20% of a lump-sum offer or the first monthly payment in a periodic payment. If the IRS does not accept the OIC, then this payment will be applied to your debt. If the IRS accepts, this is the first of several payments under your OIC.

What Is the Success Rate of an Offer in Compromise?

In 2024, the success rate of an offer in compromise sent to the IRS was 21%. The agency accepted 7,199 OICs out of 33,591 offers made. These 7,199 accepted offers totaled $163 million, averaging almost $22,700 per OIC. OICs are hard to get, as there are numerous qualifications required just to apply. The IRS expects taxpayers to try other forms of tax debt settlement before resorting to other options.

What Is the Downside of an Offer in Compromise?

One downside of an offer in compromise is that they are very hard to get from the IRS, and if you do get an OIC, you need to pay the amount stated. If you offered too much in an OIC, you may still find yourself in a difficult financial situation. This is why it’s helpful to hire an offer-in-compromise attorney to help you make an offer that is reasonable for you and acceptable to the IRS.

How Much Should You Offer for an OIC?

Every taxpayer’s situation is unique, and an OIC should be tailored to what you can reasonably pay. This is what the IRS is likely to accept based on factors such as your income, asset equity, expenses, and ability to pay. Determining a reasonable amount that won’t put you in financial hardship while paying the OIC can be difficult. With an experienced tax attorney, it is much easier to assess your financial situation.

Find the Right Venice Offer in Compromise Lawyer

For dedicated legal support to resolve your tax debt and protect your financial future, contact TaxSmith, LLC today.

Venice, FL Tax Law Additional Resources:

Tax Liens in Florida

• How to Remove a Tax Lien in Florida
• Federal Tax Lien Statute of Limitations in Florida
• How Long Does a Tax Lien Last in Florida?

Tax Debt & IRS Issues in Florida

• How to Get Out of Tax Debt in Florida
• Can a Tax Attorney Negotiate with the IRS to Resolve Tax Debt Issues in Florida?
• IRS Offer in Compromise in Florida
• How to Negotiate a Tax Debt Settlement with the IRS in Florida
• Tax Settlement Options for Florida Residents