IRS Offer in Compromise

An Offer in Compromise in New York State is a binding agreement wherein the state agrees to accept less than the full amount tax due, including interest and penalties.In August 2011, New York State Governor Andrew Cuomo signed into law a bill amending the Offer in Compromise program. This law allows the State to consider the economic circumstances of the taxpayer along with their reasonable collection potential based on sufficient proof shown by the taxpayer.

Since the State is settling for less than the full amount, the Offer in Compromise process is thorough and often document intensive. For this reason it is advisable to seek assistance from a knowledgable CPA firm with the experience necessary to work with the state. Call us to discuss if a Offer in Compromise is a feasible resolution for your outstanding tax liability. Many taxpayers may be able to settle IRS problems for only pennies on the dollar under this often overlooked IRS program. In addition to New York, most states also have similar programs.

The Offer in Compromise (OIC) program was specifically designed to settle tax liabilities for less than the full amount owed if you qualify under one of three criteria:

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• Doubt as to liability and you don’t believe you actually owe the tax.

• Doubt as to collectibility and you can’t pay the tax.

• Effective tax administration and paying the tax would create an undue hardship.

 

We Deal with the IRS Directly

Because dealing with the IRS can be so intimidating, and because the process itself can be so complicated, we urge you to work with a CPA experienced in this area. We would act as your representative with the IRS, dealing with them directly through phone, mail and at our office.

We handle each of our OIC cases in a personal and discreet manner and offer a free initial consultation to evaluate your specific situation.