Why an Offer in Compromise Makes Sense When Income is Low
For those struggling economically, now is as good a time as ever to try and resolve your tax liability issues. A common tax resolution solution is an Offer in Compromise (OIC), which is an attempt to negotiate a settlement with the IRS to accept a lower amount of money owed.
“Now is a really good time to think about trying to resolve your tax issues because if you’ve lost your job or you have depleted your assets just trying to stay afloat during this tough time, then you may be thinking, ‘My IRS problems are the least of my worries at this point,’” according to St. Louis tax lawyer Mark Milton. “But an Offer in Compromise could help resolve your tax debt for pennies on the dollar if your income is low and your assets are minimal.”
Another benefit is the IRS is precluded from pursuing enforcement actions while the OIC is pending. Especially given all the recent delays the agency has experienced due to the COVID-19 pandemic, it is possible to provide relief to enforcement actions being taken against you for anywhere from 6 to 18 months while the OIC process is ongoing.
The IRS has an extremely standardized process for OICs, which is why it’s important if you owe money to work with a licensed, skilled tax professional who understands the IRS process, can formulate detailed financial records for you, and calculate a reasonable amount to offer in a settlement. Milton Law Group works directly with the IRS so in many situations a client never has to speak to the IRS once they have hired one of our St. Louis tax attorneys.
“My advice is to assess your situation with a local, licensed tax attorney in order to look at the age and amount of your tax debt in order to develop a roadmap to negotiating with the IRS,” Mark said. “The Milton Law Group team of tax attorneys in St. Louis will conduct a thorough review of your situation and provide a recommendation tailored to the interests of you and your family.”
Give us a call today at 833-LAW-1040 for a consultation to discuss the best tax resolution options for you.
You can find more tax tips and information by listening to Mark Milton’s tax resolution advice podcast.