Offer in Compromise (OIC)- Not Always the First Option

Many people feel that an Offer in Compromise is an easy way to wipe out debt, but it is not designed for everyone. It is similar to declaring bankruptcy. It is only for people who cannot afford to pay their taxes, for those who cannot even make monthly payments over time. It is for those who don’t have value built up in property or assets.

As with a bankruptcy, you will be required to fill out a lot of information about your financial situation. This will be submitted to the IRS, who will decide to accept or reject your offer. They have the authority to compromise on your debt, to accept less than the full amount of debt because of your extenuating circumstances.

Some of the circumstances that may warrant an Offer in Compromise are if there is little chance that the debt can be paid within 10 years, there is doubt that the debt was correctly assessed or there is evidence that paying off the debt would cause a serious financial hardship.

The majority of the offers are rejected by the IRS, but you can then go through the appeals process to get it resolved. All in all, an Offer in Compromise is not simple; it is a complicated process, which can be difficult and lengthy. However, it is a good option for those who truly cannot afford to pay their debt.

If you are having problems with debt and feel like there is no way out please give me a call today. We can work with your debtors and help you move on to a new day. Todd Courser 810-245-0813