Miami Offer in Compromise Attorney

Miami Offer in Compromise Lawyer

When you owe the Internal Revenue Service (IRS) a substantial debt, it can feel like there is no way out. However, you have options. A Miami offer in compromise attorney can help you explore different debt settlement options, including an offer in compromise (OIC). An OIC is an incredibly useful way for taxpayers to reduce their tax liability when they don’t have the means to pay it.

Not all taxpayers will be able to get an OIC. At TaxSmith, LLC, we can look at your finances and other options for debt settlement to determine if you should pursue an OIC. Our firm understands the overwhelming nature of tax debt. You have options, and the IRS is willing to work with taxpayers who do not have enough financial means. Our firm helps you understand these options and represents your interests in negotiations with the IRS.

The Taxpayer Assistance Center in Miami can also provide additional assistance with your federal tax issues, including the process of an OIC. This office is located at 51 SW First Avenue, Suite 311. Our firm can help you prepare for a meeting here or represent your interests to the IRS.

Understanding a Miami Offer in Compromise

An OIC is a program with the IRS that enables taxpayers to settle their entire tax liability for a lower amount, wiping away the rest of the liability. This option is available to a select few taxpayers, typically those who are financially unable to pay the stated tax liability. In a successful OIC, you pay the lower agreed-on amount, and the IRS considers your tax debt settled.

However, there is no guarantee that an OIC will be accepted. You must meet several qualifications to be eligible to apply, and even then, your offer may be refused. The IRS received 33,591 proposed OICs in fiscal year 2024 and accepted 7,199 of them, making an acceptance rate of 21.4%. This is much lower than FY 2023, which had an acceptance rate of 42.1%. In FY 2022, the acceptance rate was 36.5%.

An OIC is the ideal outcome for tax debt for many taxpayers. You should first explore other options for resolving your debt, but this is a fantastic way to start anew if those methods are not feasible.

Why Is It Important to Hire an Offer in Compromise Attorney?

There are many benefits to hiring an offer in compromise attorney for your tax issues. An attorney can analyze your unique situation and determine if you should file for an OIC. Filing for an OIC can be complicated and has many requirements. An attorney has experience presenting an OIC and can help you gather the needed information.

They can also help you determine a fair amount to offer without overpaying. An attorney helps you avoid common pitfalls, which can make you more successful in getting an OIC.

Qualifications for an Offer in Compromise

An OIC application will only be considered if you meet one of the following criteria:

1. There is legitimate doubt that you owe the listed tax liability.
2. There is legitimate doubt that you can pay the full tax debt.
3. Paying the full tax debt would put you in financial hardship.
4. Accepting the offer would constitute effective tax administration by the IRS when the agency cannot recover the full debt.

You must prove that one of these situations applies, and your application carries that burden of proof. There are additional requirements you must meet to apply for an OIC, including that you:

• Filed your required tax obligations, including returns and estimated payments
• Have an extension for your current tax return if that is the year you are filing the OIC for
• Are not in active bankruptcy proceedings
• Paid the application fee
• Filing the required documents with accurate information
• Provided the initial OIC payment
• File specific tax deposits if you are an employer, including the current quarter deposits and the deposits for the prior two quarters.

While the IRS determines whether or not to accept your offer, collection actions will be paused. This can provide you with much-needed breathing room.

FAQs About Miami Offer in Compromise Law

How Much Should You Offer for an Offer in Compromise?

How much you should offer for an OIC is entirely dependent on your financial circumstances. The IRS may accept an offer if it determines that the offer is reasonable. The IRS will consider your ability to pay, your income, your expenses, and your asset equity to determine what is reasonable. The agency may also send you a counteroffer. When you have a skilled attorney by your side, they can help you determine a reasonable offer.

How Much Does It Cost to Apply for an Offer in Compromise?

To file an application for an OIC, the fee is $205, plus the first portion of your OIC payment. This first portion may be 20% of a lump sum OIC or the first monthly payment of a periodic payment OIC. There may be additional costs associated with filing an OIC, including the expenses of professional assistance. However, OICs are more likely to be successful when you have the counsel and knowledge of an experienced attorney.

Who Can Help Me With an Offer in Compromise?

There are several tax professionals who can help you with an OIC, including an offer in compromise lawyer. While it’s possible to file the OIC on your own, working with legal support helps you include the right information, know what you are eligible for, and make the right offer. When you hire an offer in compromise attorney, it increases the chances of a successful outcome for your OIC.

Is It Worth It to Do an Offer in Compromise?

Whether or not it is worth it to do an OIC relies on your unique situation, your financial ability, and your tax debt. If you qualify for an OIC, securing it can significantly reduce the tax liability you owe and save you money. It also gives you a fresh start for your taxes. Discussing your case with an attorney can determine if you can file an OIC, as well as the likelihood of securing a settlement this way.

Find an Experienced Tax Debt Settlement Attorney in Miami

You don’t have to deal with the financial and mental strain of having a significant tax debt. Instead of ignoring this issue, it is important that you act quickly to address it. Get in touch with TaxSmith, LLC today and see how we can support you.