Offer in compromise (OIC) is one of the reliefs that is mostly in demand when taxpayers are in a financial dilemma. However, without proper representation, going through the process is legally complicated and economically dangerous. Here, the IRS Fresno tax attorneys take the stage. What are some areas that they can help with, and why might you need one?
What is an Offer in Compromise (OIC)?
An Offer in Compromise is one of the programs offered by the IRS, which enables taxpayers to negotiate a lesser amount as compared to the total amount of the taxes as a settlement. It is usually offered to persons with the capacity to prove incapability to pay the full liability because of financial weakness.
Are IRS Tax Attorneys Qualified to Handle OIC Cases?
Yes. IRS tax attorneys have the legal expertise and the right to represent you in front of the IRS, so they will be able to evaluate whether you are eligible, draft reports, and engage in negotiations. They are knowledgeable in federal tax laws, and they know how to avert traps that might lead to rejection.
How Do IRS Tax Attorneys Evaluate OIC Eligibility?
With tax attorneys, your review is extensive, and they look at:
- Revenues and costs
- Balance sheets and debts
- Current tax filing status of compliance
This information helps them determine the extent to which the IRS is likely to agree to an offer so that the clients do not waste their time and efforts in presenting poor applications only to be scrutinized further.
Can a Tax Attorney Improve the Chances of OIC Approval?
Absolutely. In addition to making sure that the Form 656 and the other financial forms are duly filled out, tax attorneys:
- Make good legal cases supporting uncertainty about collectibility or the effective administration of taxes.
- Expect and overcome the IRS challenges.
- Liaise/talk to the Offer Examiner or the Settlement Officer.
Approval opportunities may be considerably amplified by means of this legal experience.
What Happens If the IRS Initially Rejects the Offer?
In case a particular OIC is denied, the IRS tax attorneys may:
- Claim with the IRS Appeals Office.
- Improve on the initial proposal by presenting better proofs.
- Bargain new installation packages or the Currently Not Collectible (CNC) position.
This is the time when having legal representation becomes important so as to put up a good appeal case.
What Are the Benefits of Hiring a Tax Attorney Over Other Professionals?
Tax attorneys from Riverside, CA, or other places have more credentials than CPA or enrolled agents:
- Enjoy the privilege of communication (attorney-client).
- Maybe even represent clients in the Tax Court of the U.S.
- They are trained in the law of tax, negotiation, and litigation, which is crucial if the case becomes more complicated.
Do Tax Attorneys Handle IRS Communication and Paperwork?
Yes. Hiring a tax attorney will act as the buffer between you and the IRS, where the only pressure you would feel is in the background, and where all the forms, deadlines, and formalities would be addressed with perfect precision.
When your tax debt almost feels like an impossible situation, then professional legal assistance will not only be a bright idea, but a necessary course of action.
