Offer in Compromise: When Will the IRS Settle for Less From Florida Residents?

If you owe substantial amounts of money to the Internal Revenue Service, you may think the Offer in Compromise (OIC) program sounds too good to be true. For some Florida taxpayers, it’s a legitimate path toward settling a tax bill for less than the full amount owed.

The IRS doesn’t hand out compromises easily, but for Florida residents trying to avoid aggressive collection actions, the OIC program is worth considering. Our experienced Florida tax-IRS attorney explains what you need to know about the process.

Who Qualifies for the IRS Offer in Compromise Program in Florida?

Do you owe federal tax debts? The Internal Revenue Service (IRS) will consider accepting an Offer in Compromise, but only if it believes you are genuinely unable to pay the full tax liability amount.

This is far from a quick fix or loophole. Getting approved for an OIC requires detailed financial documentation and strict compliance with all tax filing requirements. Eligibility depends on several key factors:

• You must be current on all required tax filings (or have a valid extension).
• You cannot be in active bankruptcy.
• You must be in compliance with estimated payments and withholding.
• Your offer must reflect the IRS’s calculation of “reasonable collection potential.”
• You must submit a full financial disclosure using IRS Form 433-A (OIC) or 433-B (OIC)

An OIC can help Florida residents who suffer a job loss, a medical hardship, or a failed business. However, your offer must be realistic, or it could delay resolution or even trigger enforcement actions.

What Happens During the OIC Process?

Once submitted, the IRS will review your offer and supporting documents in detail. According to current IRS procedures, it may take several months or longer to receive a decision.

During this time, collections are typically paused, but interest continues to accrue. Here’s what Florida taxpayers can expect during the process:

• The IRS reviews your income, expenses, assets, and liabilities.
• You may need to provide updated financial documents.
• You must continue to stay current on all new tax filings.
• If accepted, you must comply with all tax rules for the next five years or risk default.
• The IRS may reject your offer, but you can appeal.

The IRS is more likely to approve your offer if the amount is equal to or greater than what they believe they could collect over time. Our Florida IRS/tax attorney helps ensure your calculations are accurate and your documentation is complete, giving your offer the best chance of being accepted.

Schedule a Consultation Today With Experienced Florida Tax Attorney Ronald Cutler

Submitting an Offer in Compromise can provide relief for Florida residents facing overwhelming IRS tax debt. However, the process is detailed, document-heavy, and high-stakes. Don’t go it alone.

As a licensed attorney, Certified Public Accountant, and former FBI Special Agent, Ronald Cutler has over 50 years of experience helping Florida residents reduce their tax debts. To get the trusted legal guidance you need when making an offer in compromise, contact our office. Schedule a consultation with our Florida tax/IRS attorney today.

Sources:

irs.gov/payments/offer-in-compromise

irs.gov/pub/irs-pdf/f433aoi.pdf