Naples Offer in Compromise Attorney

Naples Offer in Compromise Lawyer

If you have unpaid taxes and you don’t address them, the penalties and interest will make this debt continue to grow. Owing tax debt to the Internal Revenue Service (IRS) is an incredibly stressful situation, especially when the debt grows past what you are capable of repaying, even in a payment plan. When this happens, a Naples offer in compromise attorney could explore your options, including an offer in compromise (OIC), to settle that debt.

TaxSmith, LLC: Skilled Counsel for Offer in Compromise Cases

An OIC is a very beneficial tool that aids many taxpayers, but it is difficult to secure. Few OICs are accepted by the IRS. If you cannot pay back your IRS tax debt and think an OIC is the right option for you, TaxSmith, LLC, can help.

For decades, we have assisted taxpayers with their tax issues, including settling tax debt. We can review your options for debt settlement, including an OIC. Naples is located near a Taxpayer Assistance Center in Fort Myers, which is located at 4210 Metro Parkway. Our firm can represent you in negotiations with the IRS, and we can defend your interests from the beginning to the end of the process.

What Does an Offer in Compromise Do?

If you don’t have the financial ability to pay back your debt, the IRS is open to working with you on alternative methods to resolve your debt. An OIC is one of those options that enables you to settle your entire tax liability for a lesser amount. Once an OIC is accepted, you can begin to make payments, and the rest of your tax liability will be erased. You can begin filing your taxes on time and not have an existing liability to worry about.

An OIC is one of the most useful options for indebted taxpayers, both business and individual taxpayers. However, you must try other debt settlement options first. You have to meet a lot of qualifications to apply for an OIC. Even if you are eligible to apply, the IRS may refuse the offer.

What Are the Qualifications for an Offer in Compromise?

An OIC proposal is only considered if you meet certain criteria, and your application has the burden of proof to show how one of the criteria is true. One of the following must apply:

1. There is genuine doubt that you are liable for the tax, such as in cases of identity theft.
2. There is genuine doubt that the IRS can collect the liability, such as if paying it would put you in financial hardship or your assets and income total less than the debt you owe.
3. Accepting the proposed OIC is considered an effective IRS tax administration to collect a portion of the taxes the agency is owed.

Your application can be considered if it meets one of the above criteria, but there are also additional qualifications and offer in compromise laws you must meet. These include that you:

1. Have submitted relevant information and documentation.
2. Paid the application fee and the initial payment amount.
3. Are not involved in any active bankruptcy proceedings.
4. Have filed your federal tax returns and/or estimated payments.
5. Have an extension for the current year’s tax return if you are filing for an OIC for that year.
6. Filed necessary deposits as an employer for the current quarter and the prior two quarters.

When you hire an offer in compromise attorney, they can determine if you are eligible to file for an OIC under all these qualifications. If so, they can draft and file your application. An attorney can create an application that puts your situation in the most favorable way.

Your attorney can also take advantage of unique benefits, such as cases where you might waive the application fee. Your OIC has a better chance of success with a dedicated and experienced Naples offer in compromise lawyer.

FAQs About Naples, FL Offer in Compromise Attorney

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

There is a $205 non-refundable application fee to file an offer in compromise, and you must also include in your application the first payment towards your proposed OIC. This is either 20% of a lump sum payment or the first month’s payment in an installment agreement. This amount goes toward paying off your tax liability.

While working with a tax attorney can add to your costs, they can also save you money by avoiding errors and improving your chances.

What Is a Reasonable Offer for an Offer in Compromise?

There is no one amount that is considered a reasonable offer for an OIC. It will depend on your financial situation and what the IRS thinks you can pay. The IRS considers information like:

• What you owe in tax debt
• Your income and expenses
• Your asset equity
• Your ability to pay back the debt

When you file your OIC with the help of a Naples tax debt settlement attorney, they can assess what is a reasonable offer for your situation.

What Is the Success Rate of an Offer in Compromise?

A: In FY 2024, the IRS accepted 7,199 OICs out of 33,591 proposed offers, making a success rate of 21.4%, or about one in five offers. While it is difficult to secure an OIC, it can be incredibly beneficial. The IRS is more likely to accept an OIC if the agency believes it is the most effective way to secure some benefit from the tax liability. These 7,199 offers totaled more than $163 million.

Is It Worth It to Do an Offer in Compromise?

It may or may not be worth it to file for an OIC, depending on your debt and financial situation. If you can file for one, an OIC saves you a lot of money and can put you back in good standing with the IRS. However, they are difficult to secure. There are other options for debt settlement, such as penalty abatement or installment agreements. These options can be helpful for other individuals.

Find a Skilled Naples Offer in Compromise Lawyer Today

When you have tax debt, you should not ignore it. It will only grow, and the IRS will begin taking collection actions, such as wage garnishment, bank levies, and liens on your property. There are ways to settle your tax liability, including an OIC and other options. If you do not have the financial ability to pay back a growing debt, TaxSmith, LLC, can help. Contact our firm today to discuss your situation.

Naples, FL, Offer In Compromise Law Resources:

• Types of IRS Tax Penalties in Florida
• How To Negotiate a Tax Debt Settlement With the IRS?
• Federal Tax Lien Statute of Limitations
• How to Remove a Tax Lien in Florida? 
• What Happens If You Miss the IRS Tax-Filing Deadline in Florida?
• IRS Bank Account Levy Definition & Examples