Fort Lauderdale Offer in Compromise Attorney

Fort Lauderdale Offer in Compromise Lawyer

If you owe the Internal Revenue Service (IRS) a significant tax debt that you are financially unable to repay, you may be able to qualify for an offer in compromise. A Fort Lauderdale offer in compromise attorney can help you assess if you qualify and create a strong application. You are much more likely to be successful in getting an offer in compromise (OIC) with the help of an attorney, and you could secure an essential financial fresh start.

Hire an Offer in Compromise Attorney

The team at TaxSmith, LLC can help you find the right resolution to your tax debt in Fort Lauderdale. Dealing with IRS tax debt can be very overwhelming, but you may have options. We want to help you find the right option. Our firm has spent more than a decade helping taxpayers navigate issues with the IRS, including securing OICs.

We can assess your debt settlement options, represent you at the IRS Taxpayer Assistance Center Office in Plantation, and help you find the most beneficial resolution. If you can apply for an OIC, we can help you create a strong application. We believe in straightforward and transparent legal guidance as we navigate tax codes.

What Is an Offer in Compromise?

An OIC is a method of debt settlement that lets you clear your entire tax liability for a lesser amount.

When you miss tax payments or make mistakes on your returns, you can face penalties. In 2024, the IRS assessed more than $84 billion in civil penalties. There are many errors that can lead to one or multiple penalties, which can then accrue interest if you ignore them. Penalties, any tax payments you owe, and all the interest can become a significant liability over time. You may not have the financial ability to pay off this debt.

An OIC allows you to pay a lump sum or periodic payment and then clears your entire tax liability once the payment is complete. It is the ideal way for many taxpayers to get a fresh start.

How Easy Is It to Get an Offer in Compromise in Fort Lauderdale?

It is very hard to get an OIC in Fort Lauderdale. The IRS accepted 7,199 OICs out of 33,591 proposed OICs in 2024, or an acceptance rate of 21.43%. This was almost half the acceptance rate of the prior year. You can only try to get an OIC if you have considered all other methods of debt settlement and have been unable to make them work. You must also be unable to pay off your full tax liability or prove that doing so would prevent you from paying your most basic living expenses.

If you are successful in securing an OIC, it can save you significant money, as well as eliminate the stress of IRS collection actions and further financial penalties. OICs accepted from taxpayers in 2024 totaled $163 million in gains for the IRS. This means the average OIC was about $22,700.

What Is the Cost of an Offer in Compromise?

There are several costs to consider for an OIC, including:

• A $205 nonrefundable application fee
• The initial part of your payment for your offer
• Attorney fees

Your initial payment is either 20% of a proposed lump sum OIC or the first monthly payment for a periodic OIC.

While it can cost a lot to file an OIC and cost more to work with an attorney, this can help you save a lot of money in the long term. A successful OIC can clear the rest of your tax liability and help you avoid collection actions and other serious penalties. When you work with an OIC attorney, you are more likely to create a strong and comprehensive application for an OIC. This can increase your chances of success.

FAQs About Fort Lauderdale Offer in Compromise Law

How Much Will the IRS Usually Settle For?

The amount the IRS will usually settle for is what it expects you can reasonably pay, and the most it can expect to collect from you within a reasonable amount of time. This amount will be determined based on your income, expenses, asset equity, and ability to pay. Each person’s financial situation and tax liability are different, so the amount will vary. When you hire an offer from a compromise attorney, they can help you determine a fair offer.

What Are the Downsides of an Offer in Compromise?

The main downside to an offer in compromise is that it is hard to get them. The 2024 acceptance rate for OICs was 21%. Very few taxpayers qualify to file for an OIC, and even fewer who qualify are accepted. Another downside of OICs is that if your offer is accepted, it can still be very financially straining to repay in the short time required. It’s important to determine the right offer without paying more than you can afford.

Can the IRS Reject an OIC?

The IRS can reject an OIC, and it rejected about 79% of offers made in 2024. The IRS may reject an OIC if other methods of debt settlement would apply and you haven’t tried them, such as a payment plan. An OIC may also be rejected if you don’t meet other qualifications, such as failing to pay recent taxes or being in a bankruptcy proceeding. There may also be insufficient information to determine your financial circumstances.

What Are the Pros and Cons of an OIC?

The pros of an OIC are that it can lead to a fresh start and financial benefits of clearing your tax liability, while the cons are that they are rare to successfully get and can still be a financial strain if you are able to get one. With the help of an attorney, you can clearly weigh these pros and cons regarding your unique financial circumstances. Finding the right OIC amount is an important part of avoiding the cons.

Contact Fort Lauderdale Offer in Compromise Attorney

The IRS is willing to work with taxpayers who can’t pay back their tax liability. At TaxSmith, LLC, we fight to protect your rights and financial interests while navigating issues with tax agencies. The longer you wait, the more penalties and costs can pile up. Contact our firm today and address your tax debt as soon as possible.