When You Can’t Pay The IRS

An “offer in compromise” – an OIC – is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Not everyone who owes the IRS will qualify for an OIC, but if you owe the IRS a substantial amount, and if you need to reach a compromise with the IRS, discuss your circumstances right away with an experienced Chicago tax settlement lawyer.

Your eligibility for an OIC depends on your age, health, income, assets, and liabilities. A good tax settlement lawyer can conduct a comprehensive financial evaluation to determine if you qualify for an offer in compromise, and if you do, that lawyer can help you obtain it. The IRS will accept your OIC only if you can prove at least one of these claims:

– You can’t pay the full amount that you owe in the foreseeable future, either as a lump sum or over time through a payment agreement.

– There is a legitimate dispute regarding the amount of your tax liability.

– Payment in full would cause an economic hardship (for example, if you are disabled, can’t work, and paying your full tax liability would leave you with no way to pay for housing or utilities).

When you submit an offer in compromise, you must provide detailed information to the IRS about your cash, credit, investments, assets, income, debt, and your anticipated future income. Submitting an OIC to the IRS – and having it accepted – is a complicated procedure; let an experienced Chicago tax settlement lawyer advise you as to your eligibility and ensure that your OIC paperwork is accurate and complete. Once again, not everyone who owes the IRS will qualify, but if you must “get right” with the IRS, discuss your tax situation and the OIC option as quickly as possible with an experienced Chicago tax settlement lawyer.