Missouri Lawyers for IRS Offers in Compromise

Settling Tax Debts for Less Than the Full Amount Owed

An offer in compromise is an IRS collection procedure for taxpayers who cannot pay an established federal tax debt in the full amount owed. Demonstrating eligibility for an offer in compromise agreement can be complicated, and an experienced tax attorney can help you document your financial circumstances in a way that protects your ability to meet household expenses and other debt problems while satisfying the IRS. Contact the Law Office of Kenneth P. Carp in Clayton for a free consultation about the ways an offer in compromise can help you resolve a difficult tax debt problem.

Missouri Tax Debt Attorneys: Call 314-685-8928 or 888-342-3049

Also known as an OIC agreement, an offer in compromise settlement with the IRS needs to be based on a showing that the taxpayer cannot pay the full amount of a tax liability. Before developing a reasonable offer plan, it is first necessary to demonstrate through financial statements and IRS forms that there is no practical ability to pay the whole of a tax debt up to $50,000. You also need to qualify on the basis of income, as the OIC program is only available to taxpayers with an annual income less than $100,000.

Processing the application for an offer in compromise focuses on evidence of the taxpayer's inability to pay the full tax debt, either as a lump sum or through a payment plan. Our lawyers will help you understand the detailed household budget and expense information that will need to be submitted to the IRS, and will be especially careful to avoid understatement of these expenses. We can also submit supplemental information as necessary to ensure that your OIC application receives fair consideration.

As a general matter, the IRS will be interested in collecting as much of your income as possible in an approved OIC agreement. You should expect your attorney to make the strongest case possible for the reasonable necessity of stated household expenses and the undue hardship that disallowance of the expenses would present for you and your family.

While the main objective of the IRS is to make sure that the OIC reflects the taxpayer's "reasonable collection potential," your goal is to achieve tax debt repayment terms that you can actually perform over a period of time. For a St. Louis tax attorney's advice about the offer in compromise option for resolving serious tax debt problems, contact the Law Office of Kenneth P. Carp for a free consultation.

The lawyers at the Law Office of Kenneth P. Carp offer extensive experience to people in Missouri as well as in other states nationwide.