Bethesda Offer in Compromise Lawyer 

An Offer in Compromise (OIC) with the IRS can be an option when a taxpayer genuinely cannot pay their full tax liability. It is not a quick fix for everyone, but a specific program for those who meet strict eligibility criteria based on their unique financial situation.

Hiring a Bethesda Offer in Compromise lawyer is crucial to address the complexities of this process. A skilled tax attorney or Enrolled Agent can significantly improve your chances of success by navigating the stringent IRS requirements and advocating on your behalf.

What Is an Offer in Compromise?

An OIC is an agreement between you and the IRS that allows you to settle your tax debt for less than the full amount you owe. When evaluating an offer, the IRS considers your ability to pay, income, expenses, and asset equity. The IRS typically accepts an OIC under one of three conditions:

• Doubt as to collectability: This is the most common condition and applies when the taxpayer agrees they owe the debt but does not have enough income or assets to pay the full amount within the time allowed for the IRS to collect it.
• Doubt as to liability: This condition applies when there is a genuine dispute about whether the taxpayer actually owes the amount of tax debt the IRS claims, or if the amount is incorrect due to an error in law or assessment.
• Effective Tax Administration: This type of Offer in Compromise is quite rare and is reserved for situations that don’t fall into doubt as to collectability or doubt as to liability. Often these types of Offers in Compromise arise when collection of the debt would undermine public policy or collection of the full amount would be inequitable or unjust.

Before submitting an Offer in Compromise, taxpayers must also meet basic eligibility requirements, such as having filed all required tax returns, made all required estimated tax payments, and not be in an open bankruptcy proceeding. The IRS will typically only accept an OIC if your offer is equal to or greater than the reasonable collection potential.

The reasonable collection potential is the IRS’s calculation of the total amount of money a taxpayer can realistically pay to settle their tax debt when considering their current assets and future income. The Offer in Compromise process can be complex, and working with a Bethesda attorney can improve your chances of success.

How a Lawyer or Enrolled Agent Can Help with an OIC

A lawyer can thoroughly review your financial situation to confirm if you meet the specific IRS criteria for an OIC and if it is the best strategy for your situation. Our legal team can help perform a detailed calculation of your reasonable collection potential, and ensure all your income, expenses, and assets are accurately reported.

The process requires a significant amount of detailed documentation, bank statements, and pay stubs. An OIC attorney in Bethesda can ensure all forms are completed correctly and completely, and help you avoid the common mistakes that lead to automatic rejection.

We can also argue for higher living expenses based on your unique circumstances (e.g., high medical costs) if paying the full tax liability would prevent you from meeting your basic living needs, and advocate for the best possible settlement terms. If your OIC is rejected, we can also discuss appeals options.

Contact a Bethesda Attorney to Review an Offer in Compromise Today

A Bethesda Offer in Compromise attorney can take the lead in all communication with the IRS and make the case that the amount you are offering is the most that the government can realistically expect to collect. If you are facing immediate collection actions like tax liens, bank levies, or wage garnishments, we can act quickly to communicate with the IRS, and potentially stop or release these enforcement actions by proposing a collection alternative. Do not hesitate to contact the legal team at Pontius Tax Law today to request your one-on-one case consultation.