Bradenton Offer in Compromise Attorney

Bradenton Offer in Compromise Lawyer

Owing back taxes, penalties, and interest to the Internal Revenue Service (IRS) is a frustrating situation and can lead to severe financial consequences in your life. Taxpayers may feel that there is no way out, but this is not the case. With the support of a Bradenton offer in compromise attorney, you can review what options exist for your debt settlement. It can be difficult to get an offer in compromise (OIC), but it can transform your financial situation if you are eligible.

Hire an Offer in Compromise Attorney at TaxSmith, LLC

For over a decade, TaxSmith, LLC, has helped taxpayers deal with their tax debt. There are many options for addressing debt, and an OIC is one of the most useful and beneficial for taxpayers. It is much easier to navigate the process of debt settlement with our experienced attorney. Our goal is to demystify the offer in compromise laws and tax codes. We provide straightforward and transparent legal guidance.

We can examine your financial circumstances and gather the documentation needed to create a strong OIC application. We review all your options for settling or mitigating your tax debt. Negotiating tax debt with the IRS can be done at Taxpayer Assistance Center (TAC) Offices. The nearest TAC Office is located on 5971 Cattleridge Boulevard in Sarasota. Our attorneys can represent you in these negotiations.

Understanding an Offer in Compromise

An OIC is a way that taxpayers can settle debt that they can’t afford for a lower amount than they owe. It can be paid in a lump sum or in periodic payments. Once this lower amount is paid, then the rest of your tax liability is cleared.

It can be, unfortunately, easy to face tax debt. You may make an information error or submit a payment late. These mistakes can lead to penalties. If you don’t pay the penalties or the tax debt you owe, it accrues interest and potentially more penalties. It can become a significant liability that you are unable to address.

There are options. The IRS is more than willing to work with taxpayers, especially when paying off a tax debt would prevent you from paying basic living expenses. In 2024, the IRS helped more than 62 million taxpayers with their taxes. There were over 2 million contacts with the IRS Taxpayer Assistance Centers.

An OIC is one of the most useful tools for taxpayers facing debt, and can offer you a fresh start. However, there are many qualifications and challenges when trying to get an OIC.

Is It Hard to Get an Offer in Compromise?

It can be difficult to get accepted for an OIC. In 2024, the IRS accepted only 7,199 OICs from the 33,591 OICs proposed by taxpayers. This was an acceptance rate of 21.43%. In comparison, the 2023 acceptance rate was 42.14%.

In order to get an OIC, you must meet numerous qualifications. You also must first consider other methods of debt settlement, such as a payment plan, penalty abatement, and Currently Not Collectible status. Only if you have exhausted these options can you potentially secure an OIC.

What Are the Qualifications for an Offer in Compromise?

To be eligible to apply for an OIC in Bradenton, you have to prove one of the following:

1. There is genuine doubt that you are liable for the stated tax debt. This may refer to identity theft issues or where you believe you already paid the tax.
2. There is doubt that the IRS can collect the debt owed. This generally means that if you paid the full tax debt, you would be put in significant financial hardship.
3. It is effective IRS tax administration for the agency to accept an OIC. This refers to when it is unlikely that the IRS can collect the full debt.

Then, there are many other qualifications you have to meet. This includes having filed all your required taxes, paying the application fee, and not being in a bankruptcy proceeding.

FAQs About Bradenton Offer in Compromise Law

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

There is a nonrefundable application fee of $205 to file an offer in compromise with the IRS, and you must also pay the first portion of the offer you are making. The amount depends on the kind of OIC you are requesting. For a periodic payment, the first payment is the first monthly payment, and for a lump sum payment, the first payment is 20% of that lump sum. Also consider other costs like attorney’s fees.

How Much Should an Offer in Compromise Be?

There are many factors to consider when making an offer in compromise, as the IRS will accept an OIC for what it reasonably thinks you can pay. This is based on information like your income and expenses, your asset equity, and your ability to pay. The amount of an OIC is therefore different for each taxpayer. When you hire an offer in compromise attorney, they can help you assess a fair offer without putting yourself in financial hardship.

What Is the Downside of an Offer in Compromise?

The downside to an offer in compromise is that they are rarely granted. In 2024, the acceptance rate was just over 21%. There are very strict qualifications you have to meet to even be considered for an OIC, and even then, you may not be accepted. Even if you can get an OIC, you must then pay the agreed-upon amount in a short period of time. Depending on the offer you made, this can be a financial strain.

How Hard Is It to Get an Offer in Compromise?

It can be very difficult to get an offer in compromise from the IRS, which accepted about one in five OICs in 2024. You are more likely to successfully secure an OIC when you hire an attorney. An attorney can assess whether options besides an OIC are possible, as well as whether you meet the qualifications for an OIC. They can also help you craft your application to show eligibility and find the right offer. This all increases potential success.

Work With a Dedicated Bradenton Offer in Compromise Lawyer

There are options for resolving your tax debt. At TaxSmith, LLC, we always put our clients first, and we take the time to fully understand your unique circumstances. Reach out to our firm today and take control of your financial future.