Is An OIC For You?

A solution to think about if you hope to handle your IRS problems is an Offer in Compromise (OIC).

Advantages

• If you have a tax debt, the OIC allows you to make a deal with the IRS to settle what you can afford while the balance is forgotten. You will have no more tax debt to settle and you can start over.
• Your stress will be reduced significantly because assets and salaries cannot be seized during review.
• Because a Notice of Release of Federal Tax Lien will be released by the IRS in thirty days, your credit rating will improve, that is, when the OIC is honored and you've paid the amount negotiated.

• Anybody can access your financial information because your OIC is public record for a year and may cause you problems.
• You should comply with the provisions of the IRS Code that pertain to filing returns and settling taxes for five years from the time the IRS accepts the offer.
• It may take as long as one year for the IRS to review an OIC and because of this, the statute of limitations (10 years) will be extended plus 60 days, whether the OIC was honored or rejected. OICs left pending for two years are approved, however, under new regulations.
• With the acceptance of the OIC, you agree to not question or appeal the balance of your tax debt.
• You forfeit all tax refunds you might be expecting the calendar year the IRS accepts your offer, including interest for the period.
• The IRS requires full disclosure of your financial history. Not declaring something on your forms will give the IRS reason to audit you.
• By defaulting on the OIC [http://www.squidoo.com/Offer-in-Compromise-The-Facts], your tax debt including interest and penalties are reinstated in full, less the payments you have made.

Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com