In the tax resolution world, the Offer in Compromise (OIC) is like a helping hand for people dealing with big tax bills. But, the 36% acceptance rate can make tax professionals worry. They often ask, “Will my client’s OIC actually get accepted?” Here at Crystal Clear Tax, we make understanding OICs easy. We explain how to boost your chances and assure you that our financial services are personalized just for you.
The Offer in Compromise Landscape
The OIC acceptance rate by the IRS is not a static number but rather a result of several dynamic factors. While the overall acceptance rate has hovered around 36% for years, it’s crucial to understand that each case is unique. To gauge the probability of acceptance, one must delve into the specifics of the client’s financial situation and tax liabilities.
Deciphering the IRS Criteria
The IRS evaluates OIC applications based on a set of criteria, some of which may render a client ineligible instantly. Before considering an OIC, tax professionals must address critical questions:
- Can the client fully pay the balance before the Collection Statute Expiration Date (CSED) expires?
- Is the client currently in bankruptcy?
- Is the client in compliance with filing tax returns?
- Has the client missed current estimated payments or the last required federal tax deposits?
If the answer to these questions is ‘NO,’ the client may be an eligible candidate for an OIC.
Crafting a Persuasive Case
Successfully navigating the OIC process involves demonstrating that paying the tax debt in full would result in financial hardship or a significant economic burden. Transparency is key when providing financial information to the IRS. Valuing assets accurately and reviewing the client’s income and expenses meticulously are crucial steps. Any oversight can damage the client’s credibility and the tax professional’s reputation in the eyes of the IRS.
Crafting a reasonable and realistic offer that aligns with the client’s ability to pay is essential. Lowballing the offer can hinder acceptance and complicate negotiations. It’s imperative to remind clients of the importance of maintaining compliance during negotiations and for five years into the future.
Crystal Clear Tax: Your Trusted Partner in Financial Services
At Crystal Clear Tax, we recognize the intricacies of tax resolution and the importance of tailored financial solutions. Our commitment extends beyond tax resolution to encompass a range of services designed to meet the specific needs of diverse clients, including single mothers entrepreneurs, and professionals from various industries.
Our areas of expertise include:
- Accounting and Bookkeeping: Keeping your financial records organized and reliable.
- Financial Advising: Providing strategic insights to secure your financial future.
- Tax Services: Tailored solutions for both individuals and corporations.
Your Financial Peace of Mind Starts Here
Embark on a journey towards financial stability with Crystal Clear Tax. Schedule a call with us today.
