Tax Relief Blog

We all know that the IRS Offer in Compromise (OIC) is an option available to some delinquent taxpayers to settle their federal tax debt for less than the total amount owed.  But the finer points of the OIC are what you need to know in order to successfully submit your Offer and increase your chances of success.  Here's a quick tip for those delinquent taxpayers that are really struggling financially.
 


The IRS OIC has an application fee of $186.  If you meet the IRS Low Income Certification requirements, you will not be required to pay the OIC application fee. 
 

Another provision of the OIC is that you must send in your first payment with your application.  If you meet the IRS Low Income Certification requirements, you will not be required to send in your first payment with your OIC application.

 

A requirement of the Periodic Payment OIC is that you must make monthly payments while your OIC is under review.  If you meet the IRS Low Income Certification requirements, you will not be required to make monthly payments while your OIC is under IRS review.

 

The OIC's Low Income Certification is for Individuals and Sole Proprietors only.  You can find more information about it in IRS form 656, which you can find at irs.gov.

 

If you hire Fresh Start Tax Relief, we'll investigate your IRS Collection case, analyze your Collection Potential and advise you of your best options to resolve your federal tax debt.  We'll let you know if you're a good candidate for the OIC and whether or not you qualify for the OIC's Low Income Certification.  Call Fresh Start Tax Relief today at 866-937-5079 or request a call from a Fresh Start Tax Advisor by completing our Contact Form here.