Offer in Compromise Services

Long Island Tax Resolution Services provides professional solutions that are customized to settle your tax debts for less than what you owe through Offer in Compromise.*

*Provided you meet some conditions.

If you are in a position where you need assistance in getting things right with your taxes, then Long Island Tax Resolution Services should be your first, and only phone call.
Utilizing up-to-date software technology that helps to keep the process organized, and forward-moving, James is on top of all aspects of his clients’ cases. 
Truthfully speaking, your challenges didn’t occur overnight, so do not expect to solve the same challenges overnight either. James helps you start down the right path, and over time, with a little patience, gets you started in a whole new direction.

I highly recommend James Grennan, and Long Island Tax Resolution Services, to help solve your tax issues.

Marcus Roman

Why should you choose Long Island Tax Resolution Services?

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  You-centric Approach

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  Affordable Cost

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  Certified and Experienced Team

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  Individual Attention

Our Tax Consultants

What is Offer in Compromise?

[text_block style=”style_1.png” align=”left”]An offer in compromise is a provision in the federal tax code that allows you to settle your tax debts for less than what you owe (to a reasonable extent), provided you meet some conditions. It’s a great option to consider if you aren’t able to pay off your entire tax debt due to financial constraints. The main factors considered are:

• Income
• Ability to pay
• Asset equity
• Expenses

The IRS will accept an offer in compromise if the amount being paid is the most they can expect to collect within a specified period of time. To participate in the offer in compromise process, tax filings must be current and you cannot file for bankruptcy.[/text_block]

What are the types of Offer in Compromise?

[text_block style=”style_1.png” align=”left”]There 3 Types Of IRS Offer In Compromise

The IRS offers several safeguard programs for delinquent taxpayers. The IRS designed these programs for taxpayers in financial distress and for taxpayers who would suffer by strict interpretation of the tax law. One program is Offer-in-Compromise or OIC. Qualified delinquent taxpayers negotiate settlement with the IRS for less than the owed amount. There are three separate ways that a taxpayer can qualify for a reduced settlement under the OIC program:

• Doubt as to Collectibility. The taxpayer has tax debt and an inability to pay.
• Doubt as to Liability. The taxpayer has tax debt and a legitimate reason for not paying.
• Effective Tax Administration. The taxpayer has tax debt and possible ability to pay. But to do so would cause extreme financial distress.Achieving Success

Doubt As To Collectibility

The first type of Offer-In-Compromise (OIC) is known as Doubt As To Collectibility. The delinquent taxpayer proves convincingly the taxes owed are greater than the taxpayer can ever afford to pay. If the IRS accepts this Offer-In-Compromise, then they agree to settle all of your delinquent tax debt for a single reduced amount. IRS has calculated what they think they can collect from you. The IRS calls this amount the Reasonable Collection Potential. Your settlement offer must equal or exceed the Reasonable Collection Potential amount. The IRS will reject an offer of less than the Reasonable Collection Potential amount.

Doubt As To Liability

The second type of Offer-In-Compromise (OIC) is Doubt as to Liability. The delinquent taxpayer proves convincingly to the IRS there is a legitimate reason the assessed tax debt is wrong. A common example would be the taxpayer presents evidence not previously considered. A seemingly legitimate reason cannot compel the IRS to agree to review a case. The IRS does not have to accept an Offer-In-Compromise application or to decide in favor of the taxpayer.

Effective Tax Administration

The third type of Offer-In-Compromise (OIC) is Effective Tax Administration. You agree the assessed tax debt is correct and that you could potentially pay it. However, you prove to the IRS that to collect the total tax debt would create a significant economic hardship for you and your family. The IRS calls economic hardships ‘special circumstances.’ Inconvenience does not qualify as a hardship. The IRS refers to economic hardship as Effective Tax Administration. You must collect, analyze and present extensive supporting documentation to satisfy the IRS hardship guidelines.

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Get your Offer in Compromise Filed