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Florida Tax Attorney > Tampa IRS Offers In Compromise Attorney

Tampa IRS Offers In Compromise Attorney

If you owe a substantial amount of money in unpaid taxes and you are looking for an option to reduce your tax liability, you should learn more about the possibility of IRS Offers in Compromise. According to the IRS, an offer in compromise, also known as an OIC, is an agreement between a taxpayer and the IRS that settles a taxpayer’s tax debts for less than they owe. In most situations, if you are eligible for an Installment Agreement or another kind of tax payment plan, the IRS will not agree to an offer in compromise.

Yet if you have a significant tax liability, you should speak with a Tampa IRS offers in compromise attorney about whether you are eligible for this option and whether the IRS would be likely to negotiate an OIC for your unpaid taxes.

Eligibility for an IRS Offer in Compromise for Tampa, FL Taxpayers

To be eligible for an offer in compromise, all of the following generally must be true:

  • Taxpayer must have filed all tax returns;
  • Taxpayer must have made all estimated tax payments the year; and
  • Taxpayer must have made all required tax deposits for the current quarter (if the taxpayer owns a business and has employees).

If these conditions have been met, the IRS still typically will not accept an offer in compromise unless the amount that the taxpayer offers to settle the debt “is equal to or greater than the reasonable collection potential,” or the RCP.

Should I Negotiate an Offer in Compromise in Tampa?

If you owe a significant amount of money to the IRS and you make an offer in compromise, you may be able to pay less than the total amount of your tax debt or tax liability. To be clear, an offer in compromise is an offer to pay a certain amount of tax money to settle your debt, and if the IRS accepts it, you will not owe any more tax debt.

Yet you should discuss your particular situation with a Tampa tax lawyer since an OIC is not possible in all circumstances. The IRS usually will only consider an offer in compromise if one of the following is true:

  • Doubt exists as to tax liability (i.e., there is a genuine dispute about the correct amount of tax owed);
  • Doubt exists as to whether the tax liability is collectible (i.e., whether the IRS would ultimately be able to collect the debt owed based on the taxpayer’s income and assets); or
  • Effective tax administration (in other words, the taxpayer does not dispute the amount owed and the IRS knows it could collect, but attempting to collect either would create an economic hardship for the taxpayer or would be inequitable).

Seek Advice from a Tax Lawyer in Tampa, FL

Any questions about negotiating an offer in compromise should be directed to an experienced Tampa, FL tax attorney who can help. Contact Ronald Cutler, P.A. for more information.

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