Offers in compromise

Houston Attorneys for Offers in Compromise

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. If the IRS determines that the liabilities can be fully paid through an installment agreement or other means, the taxpayer will, in most cases, not be eligible for an OIC. In fact, the IRS typically only approves approximately 25 percent of all OIC applications received each year. For this reason, having an experienced tax attorney who can guide you through the process significantly increases the likelihood that your application will be successful. Our Houston-based firm provides sound counsel and strategic negotiation with the IRS to secure an offer in compromise for tax obligations. You can reduce your tax bill and minimize penalties and consequences. Contact us today for a free consultation.

The IRS generally will not accept an offer unless the amount offered by the taxpayer is equal to or greater than the Reasonable Collection Potential (the RCP). The RCP is how the IRS measures the taxpayer’s ability to pay. The RCP includes the value that can be realized from the taxpayer’s assets and anticipated future income, less certain amounts allowed for basic living expenses.

The IRS may accept an OIC based on three grounds:

  • Doubt as to liability: This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
  • Doubt as to collectibility: This means that doubt exists as to whether the taxpayer has sufficient assets and income to satisfy the full amount of the liability.
  • Effective tax administration: An offer may be accepted based on effective tax administration when requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.

At The Pro Tax Counsel we will analyze your financial profile and evaluate your potential eligibility for an OIC. If we determine that this would be an effective strategy, given your circumstances, we will prepare and present a settlement offer that, if approved, will allow you to settle your tax bill for less than the full amount.

Contact the Pro Tax Counsel for a free consultation 1-844-452-41-65. Our lawyers offer strategic advocacy in tax law cases to protect the rights of our individual and business clients.