Offer in Compromise

Offer in Compromise

D’Arco Tax Resolutions evaluates your financial situation to find your best course of action. An Offer in Compromise is one option if you qualify.

An Offer in Compromise (OIC) is an agreement between you and the Internal Revenue Service that settles your tax liabilities for less than the full amount owed. The term “Settling for Pennies on the Dollar” refers to OIC’s. The amount of your Offer depends upon your equity in assets, your income, and your “allowable” monthly expenses.

The IRS allows 3 types of OIC’s.

Doubt as to Liability

You can utilize this Offer if the tax the IRS is trying to collect from you is erroneous. There are many reasons why the IRS has an incorrect assessment. If the IRS bills you for an incorrect assessment, we can file a Doubt as to Liability OIC and help you gather the documentation to make your case to the IRS for relief.

Doubt as to Collectability

If your finances show that you will never be able to pay the IRS the taxes they say are due within the time period the IRS is allowed by law to take collection action against you; you may qualify for an OIC Doubt as to Collectability. Our evaluation process of your financial situation allows us to see if an OIC Doubt as to Collectability is your best course of action.

Effective Tax Administration OIC

Even if there is no doubt you owe the taxes, and you actually have the money to pay them, you still may qualify for an Effective Tax Administration OIC. If you have exceptional circumstances so that paying your tax liabilities would cause an economic hardship or would be unfair or unjust, you may qualify for an Effective Tax Administration OIC, even though you have the resources to pay the liability.