Palm Beach Offer in Compromise Attorney

Palm Beach Offer in Compromise Lawyer

Having unpaid taxes that you owe to the Internal Revenue Service (IRS) can be stressful and financially draining. There is also the threat of potential collection actions, such as a bank levy or wage garnishment. A Palm Beach offer in compromise attorney can determine if you are able to secure debt settlement. An offer in compromise (OIC) is not always possible, but it can greatly benefit your financial future if you qualify.

Hire an Offer in Compromise Attorney

An OIC can give you the fresh financial start that you need. TaxSmith, LLC has worked for more than a decade to support taxpayers as they deal with their IRS tax debt. When you have tried other options and your tax debt will cause you financial hardship, you likely qualify for an OIC. With our firm, you can have a better chance of success. We help you create a strong application and a fair payment offer.

Our attorneys can help you protect your interests and navigate debt settlement with a personalized and flexible strategy.

Settling Debt Before an Offer in Compromise

Many taxpayers incur tax debt because they fail to file their taxes, or they receive penalties from the IRS for issues like information errors or delinquent checks. The IRS assessed more than 43.5 million civil penalties for individual, trust, and estate income taxes, totaling more than $20.2 billion.

If you were assessed a penalty, and you don’t pay it, it can grow. Some penalties are assessed multiple times, like failure to pay. Additionally, your tax debt can accrue interest. When you have substantial tax debt that you can’t pay, it’s important to know that an OIC cannot be your first option. You must first try settling the debt through other methods, including negotiating with the IRS on things like an installment agreement.

There is a Taxpayer Assistance Center (TAC) Office located near Palm Beach in West Palm Beach. It can be found on 625 N. Flagler Drive. You can discuss your case with an IRS agency at the TAC Office or through other methods. Your attorney can help you prepare or represent you.

Understanding an Offer in Compromise in Palm Beach

An OIC enables you to resolve your entire tax liability with the IRS for less than you owe the agency. You could pay a lump sum or a periodic payment. Once you have completed the OIC payment, your IRS tax debt is cleared.

OICs are very useful, but they are difficult to get. In 2024, the IRS accepted 7,199 OICs out of 33,591 offers proposed. This was a 21.43% acceptance rate. This was a significant decrease from the 2023 acceptance rate of 42.14%. All 2024 OICs the IRS accepted totaled $163 million, which led to an average of about $22,700 per offer.

If you can get an OIC, you could save yourself a lot of money. You will also be able to avoid additional penalties or collection actions that you would face with continued unpaid debt.

How Do You Qualify for an Offer in Compromise?

Firstly, you must prove that one of the following is true to be eligible to apply for an OIC:

• There is legitimate doubt that you are liable for the debt
• There is legitimate doubt that the IRS would be able to collect the full tax debt
• It would be efficient tax administration if the IRS accepted the OIC due to the likelihood of collecting the full liability.

Then, even if you can apply, you must also meet additional requirements to qualify for an OIC:

• You have filed all required tax returns or estimated payments
• You are not engaged in an open bankruptcy proceeding
• You paid the application fee, and the initial OIC proposed payment amount
• You submitted the required documentation
• If the OIC is for the current tax year, you have a valid extension
• If you are an employer taxpayer, you filed all required deposits in the current quarter and for the prior quarters

FAQs About Palm Beach Offer in Compromise Law

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

The cost to file an offer in compromise is $205 for the nonrefundable application fee, as well as the initial payment for your offer. This initial payment is either 20% of a lump sum payment offer or the first monthly payment in a periodic payment offer. The initial payment begins your OIC process if the offer is accepted and will be applied to your tax liability if the OIC is rejected.

What Is the Downside to an Offer in Compromise for the IRS?

The primary downside to an offer in compromise for the IRS is that they are not easy to get, and you must try all other methods of debt settlement first. If you can obtain an OIC despite the low approval rate, you must then pay the amount stated within a short time. This can be a personal and financial burden, particularly if you pay more than you need to in your settlement.

Does the IRS Usually Accept an Offer in Compromise?

The IRS has a low acceptance rate for offers in compromise. In 2024, the IRS had an acceptance rate of 21% for offers in compromise, and a rate of 42% in 2023. If you want to submit an OIC, it is important to consider the many criteria you must meet, as well as what constitutes a reasonable settlement. You are more likely to have a successful OIC if you meet the criteria and hire an offer in compromise attorney.

Why Would an Offer in Compromise Be Rejected?

An offer in compromise might be rejected if you haven’t tried all other methods of debt settlement, or you don’t meet qualifications for an OIC in other ways. You may not have paid your recent taxes, or you may be involved in bankruptcy proceedings. The OIC may also not be in the interests of the IRS to accept. When you work with an experienced OIC attorney, they can help you assess your eligibility.

Contact Palm Beach Offer in Compromise Attorney

At TaxSmith, LLC, we want to help you deal with a stressful case like owing IRS tax debt. Act quickly and reach out to our firm today. Our team uses a client-first approach and tailors our services to meet your needs. We know that each tax circumstance is unique, and we ensure that the help we provide fits your needs.