IRS Tax Offer In Compromise In Las Vegas

Do you owe back taxes to the IRS? You may be able to eliminate thousands in debt with an IRS tax Offer in Compromise.

To find out if you qualify for an Offer in Compromise or other tax debt relief options, contact Taylor Randolph at the Randolph Law Firm. 

• We have over 50 years of combined experience
• We can help you with tailored solutions
• We can help you get out of tax debt

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What Is an IRS Tax Offer in Compromise?

An Offer in Compromise, or OIC, is a type of settlement that a taxpayer can make with the IRS to satisfy a tax debt. When it is accepted, an OIC can stop disruptive collection activities such as wage garnishments, tax liens, and bank levies.

Like other creditors, the Internal Revenue Service wants to collect on money that it is owed, even if it can’t recover the entire amount. Just like banks and lenders, the IRS will often choose to accept a reasonable portion of its money now, rather than take on the hassle of collecting and the risk of recovering less money later.

What Are the Benefits of an OIC?

In addition to helping you avoid tax liens, bank levies, or wage garnishments, an IRS Offer in Compromise offers a variety of benefits to taxpayers. These include:

• Stopping collections
• Avoiding bankruptcy
• Keeping your property
• Releasing tax liens 

Additionally, some states (not all) will allow you to do an Offer in Compromise to settle your state tax debt for less than you owe. While Nevada does not impose income tax for individuals, the state does levy other types of taxes. The Nevada Department of Taxation allows taxpayers to request an Offer in Compromise to reduce their tax debts in certain circumstances. 

Who Is Eligible for an IRS Tax Offer in Compromise?

The IRS will consider a wide range of factors when determining whether you qualify for a tax Offer in Compromise. Decisions are made based on the taxpayer’s income, assets, and expenses, as well as the probability that the IRS will be able to collect the full amount of the tax debt. Additionally, you must meet the following criteria to qualify for an OIC. 

• You must have received a bill for at least one tax liability you are including in your offer
• You must not be in an active bankruptcy
• You must have filed all of your necessary tax returns
• You must have paid all your estimated tax payments for the year
• Business owners with employees must have made all federal tax deposits for the current quarter and the two preceding quarters. 

You must also meet the eligibility requirements for the grounds under which you are requesting the Offer in Compromise. Currently, the IRS only accepts tax Offers in Compromise under three grounds.

1. Doubt as to Collectibility
   The amount of your IRS tax debt is more than your assets and income.

2. Doubt as to Liability
   There is a dispute as to whether you owe the full tax debt.

3. Fair Tax Administration
   Requiring full payment would be unfair or create financial hardship.

Do You Have to Have Low Income to Qualify for OIC?

You do not have to have low income to qualify for an OIC. The IRS will consider your unique circumstances and your ability to pay your tax debt when determining whether you qualify. In fact, many taxpayers who have substantial income are approved for an OIC because their liabilities are more than their net worth. 

If you do meet the low-income threshold, however, you may be able to submit your offer without submitting any periodic payments or down payment. 

Curious As to Whether You Are Likely to Qualify for an IRS Tax Offer in Compromise?

The IRS offers an OIC Pre-Qualifier Tool that can provide some insight. Keep in mind, however, that the tool may not be entirely accurate for your situation, since it only takes a quick glance into your finances. For a deeper understanding of what you need to qualify for an Offer in Compromise, contact Las Vegas OIC attorney Taylor Randolph for a free consultation. 

What Are the OIC Payment Options?

Two main payment options are available to taxpayers who qualify for an OIC. You can submit a lump sum payment with your offer, or you can make periodic payments to the IRS. 

• Lump Sum Payment Option – if you choose the lump sum payment option for your OIC, you will need to make a 20% down payment to the IRS when you submit your request. The remaining balance will be due within five months of when your offer is accepted. If the IRS does not accept your offer, the down payment you’ve made will be applied towards your tax debt. 
• Periodic Payments Option – Selecting the periodic payment option enables you to make smaller payments to the IRS to settle your tax debt. You’ll make your initial payment when you submit your request, and continue to make payments while your offer is processing. If your offer is accepted, you will have 24 months to pay the remaining balance. If the IRS rejects your offer, they will keep your down payment and any additional payments you’ve made, and apply them to your balance. 

You’ll select the payment option that works best for your situation when you complete your OIC request. 

How to Apply for an IRS Tax Offer in Compromise

Applying for an Offer in Compromise and going through the IRS tax debt settlement process is not a simple task. There are multiple forms that must be completed correctly and submitted. You’ll also need to propose your offer strategically, and prove to the IRS that you are either unable to pay your tax debt, you’re not liable for the full amount, or paying the full tax debt would be unfair or create hardship. 

Additionally, you’ll need to pay an application fee. For 2024, the fee to apply for an OIC is $205. The fee may be waived if you meet Low-Income Certification Guidelines. Your initial payment (20% down or first periodic payment) is also due when you submit your application. 

If you make a mistake when completing or submitting your offer, it is likely that your OIC request will be rejected. 

What Happens If the IRS Rejects Your Offer in Compromise?

If the IRS rejects your offer, you still have options available to you.

• You can set up payment arrangements to pay the amount in full.
• You can work with your lawyer to find other tax debt solutions.
• You can file an appeal 

How to Appeal Your Rejected IRS Tax Offer in Compromise

If you disagree with the IRS decision, you must file your appeal within 30 days of receiving the rejection letter. You should mail your appeal to the office that sent you the letter. If you miss the deadline to appeal, your request will be denied. 

Filing your appeal can quickly become complicated, especially if there are various factors you disagree with, or specific laws that should be noted. You will need to address each item with which you have a disagreement, and supplement your disagreement with reasons and documentation. While you are not required to hire an attorney to appeal an OIC, doing so is advised. 

OIC Attorney Taylor Randolph Can Help You Settle Your Debt With the IRS

If you are under pressure to pay back taxes to the IRS, OIC lawyer Taylor Randolph can help with your tax Offer in Compromise to eliminate collections, release liens, and settle your debt. At Randolph Law Firm in Las Vegas, we can help you by:

• Preparing and submitting an Offer in Compromise with the greatest chance of getting accepted by the IRS
• Negotiating affordable IRS payment plans that can help you pay off what you owe (or less than what you owe) over a reasonable period of time
• Helping you take advantage of the innocent spouse rule, which allows some taxpayers to avoid being held responsible for a spouse’s tax debt
• Representing you in tax litigation focused on tax abatement

We have facilitated many Las Vegas Offers in Compromise for our clients, saving them thousands of dollars in back taxes and resolving IRS tax problems. As an experienced OIC lawyer with an advanced degree (LL.M) in taxation, Taylor Randolph can help you understand your legal rights and your options for clearing up your tax debt, secured and unsecured debts, or mortgage difficulties.