Sarasota Offer in Compromise Attorney

Sarasota Offer in Compromise Lawyer

When you have an overwhelming tax liability owed to the Internal Revenue Service (IRS), it can seem like there are no options, especially if you know a payment plan won’t help. However, there may still be options. A Sarasota offer in compromise attorney can help you determine if you qualify for this useful debt settlement tool. An offer in compromise (OIC) can give you the fresh start you need.

An OIC is the ideal option for taxpayers who cannot pay back their tax debt without entering financial hardship and have tried other methods of debt settlement. At TaxSmith, LLC, we can review your unique circumstances to determine if you qualify for an OIC. If you do, we can help you create an application and initial offer that is more likely to be accepted. Our firm has decades of tax law experience and is here to fight for the financial certainty you need.

Navigating the Process of Debt Settlement Before an Offer in Compromise

It is, unfortunately, easy to end up with tax debt. An emergency or unexpected situation can cause you to miss a deadline, and then you can face penalties that increase what you owe. In 2024, the IRS assessed more than $84 billion in civil penalties for individual and business taxpayers, including for failure to file and delinquency. If you don’t address the issue, the penalties and your tax debt will continue to grow with interest.

It is crucial to review other options for debt settlement first, before applying for an OIC. When negotiating with the IRS, there is an IRS Taxpayer Assistance Center Office located in Sarasota, at 5971 Cattleridge Boulevard. An IRS Tax attorney in Sarasota helps you prepare for these negotiations and consider your options for debt settlement.

Offers in Compromise in Sarasota

An OIC is a program the IRS offers that enables taxpayers to settle their entire IRS liability for a lesser amount than they owe. Once you have paid the full OIC amount, the rest of your debt is cleared. This tool is an essential way to get a fresh start and get back on track with filing your taxes.

For some people, an OIC is the most effective option to address their debt, but offers are not always accepted. In 2024, the IRS received nearly 33,600 OICs and accepted nearly 7,200. The agency’s acceptance rate was about 21.43%. To even be eligible to apply for an OIC, you must meet one of the following criteria:

1. There is genuine uncertainty about whether you are liable for the stated debt, such as issues with identity theft, or whether you believe you already paid the debt.
2. There is legitimate doubt that the IRS is able to collect the full tax debt, such as if paying the full amount would place you in financial hardship.
3. It is considered effective tax administration for the IRS to accept the OIC because collecting the full debt is unlikely.

When you apply for an OIC, you must prove one of these situations applies.

Additional Offer in Compromise Eligibility Requirements

There are several other requirements you must meet to apply for an OIC, including:

1. You have filed all your required tax returns.
2. You aren’t in any open bankruptcy proceedings.
3. If you are applying for an OIC for the current year, you have a valid extension for that tax return.
4. You have provided the necessary documentation.
5. You paid the application fee.
6. You paid the initial payment amount for the lump sum or periodic payment.
7. If you are an employer, then you have filed the required deposits for the current quarter and the two quarters prior to the current quarter.

An attorney helps you navigate these requirements and protect your interests along the way.

FAQs About Sarasota Offer in Compromise Law

Who Can Help Me With an Offer in Compromise?

You can hire an offer in compromise attorney to help you navigate an OIC. An attorney helps you by reviewing your circumstances to determine if you are qualified to file, helps you make the right offer, and includes the essential information in your application. It is often difficult to successfully obtain an offer in compromise, and an attorney can help you improve your chances and help you consider other options for debt settlement if necessary.

How Much Is the Offer in Compromise Fee?

The OIC filing fee is $205 for the application, but there are other costs to consider. This includes the initial payment amount of your OIC offer, which is either 20% of a lump sum OIC or the first monthly payment for a periodic payment agreement. The application fee is non-refundable. If your OIC is accepted, the first payment will begin the process. If your OIC is rejected, the payment amount will still be applied to your liability.

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

The downside to an OIC with the IRS is that they are very difficult to get. The 2024 acceptance rate was 21.43%, compared to the 2023 rate of 42.14%. If you are able to secure an OIC, you must pay the amount you stated in a very short period of time, which can be stressful. For some taxpayers, it may still be a substantial financial burden. With an attorney, you can more accurately assess a reasonable payment amount.

What Percentage Does the IRS Usually Settle For?

The IRS will usually settle for the amount it thinks you can pay when accepting an OIC. The amount the agency settles for is not a set percentage of your debt. Instead, the agency will consider the amount you owe, your income, your expenses, your asset equity, and how all that impacts your ability to pay your debt. What the IRS considers a reasonable settlement is, therefore, completely unique to your situation.

Hire an Offer in Compromise Attorney – Dedicated & Seasoned Tax Assistance Law Firm

Many taxpayers feel paralyzed when they owe tax debt to the IRS, and this can cause them to ignore the debt. The problem will only become worse. It is important to find a Sarasota offer in compromise lawyer who can help you secure the ideal outcome for your case. Reach out to TaxSmith, LLC today and schedule a consultation to discuss your tax debt settlement options.

Serving Sarasota and the Surrounding Southwest Florida Area

If you’re facing IRS tax problems, state tax issues, or need assistance with tax resolution in Sarasota or nearby communities, our experienced tax attorney is here to protect your rights and financial future. We understand the serious consequences of unresolved tax matters and the stress of dealing with tax liens, wage garnishments, audits, or collection notices.

Located in Sarasota, TaxSmith LLC is deeply familiar with both federal tax law and Florida state tax requirements. Attorney Angie Smith has successfully resolved thousands of tax cases throughout the region, offering strategic and personalized tax resolution services for individuals and businesses facing complex IRS and state tax challenges.

Whether you’ve just received a notice from the IRS, are facing an audit, or have years of unfiled tax returns, acting quickly with a Sarasota tax attorney who understands the intricacies of tax law can make all the difference in achieving the best possible outcome for your situation.