Austin Tax Blog


An Offer in Compromise is always the last resort when you cannot see any hopes to pay the delinquent taxes. If the request is made with all legal proofs and explanation for financial incompetence then there are fair chances of getting an IRS OIC approval. However, one thing that needs to be understood is that IRS is smart and would approve only those offers that are in the best interest of the IRS. Apart from this, one must know that there are situations in which one must not rely on IRS Offer in Compromise in Austin Texas. Let us have a look at such scenarios and discuss things in detail.

Scenarios in Which the Tax Debtor Should Not Request an IRS Offer in Compromise in Austin:

When you are planning for bankruptcy!

All your delinquent tax liabilities would be wiped off if you are planning to declare bankruptcy. Therefore, there is no need to trouble your already stressed mind if you can easily come out of the clutches of the IRS and leave without paying anything. Even when you see advertisements from tax experts suggesting that bankruptcy is a bad solution, you can certainly declare personal bankruptcy and move out of the entire tax debt.

When you have never followed the tax laws

If you have not filed any tax returns yet and are not in a habit of doing so since the beginning then there is no point requesting an OIC application as the IRS will not approve it. The IRS checks the tax behavior of the debtors and expects them to be clear with their tax returns filing even when their OIC application is pending approval. And if you are amongst those who have not filed tax returns throughout your career then it will lead to Offer in Compromise rejection without an iota of doubt. So, no need to file it.

If your previous OIC applications were rejected

The IRS does not show a graph of accepting a lot of Offer in Compromise. If it has rejected your OIC application in the first place and you could not appeal with some strong explanation then there is no point applying again. The best way to deal with an IRS OIC application is to take professional help. Find a tax service expert who has mane Offer in Compromise success stories to make sure that your OIC application is good enough.

If the collection was not made in ten years

As per the law, the IRS can collect tax dues only within ten years of finding the debtor. If that period lapses then it cannot legally collect the tax payments. This is a complicated issue and needs to be addressed by a tax expert. For those who really want to get the most out of their Offer in Compromise, they need to find the best tax service providers to launch a good OIC application. There is no chance of DIY as it will spoil the case and you may end up paying much more than expected.

To sum it up, there are situations in which launching an OIC application does no good to the debtor. It is advisable to become aware of such scenarios and not invest in an Offer in Compromise in Austin. To check whether you fall into such category, its best to discuss your individual case with the tax service provider and figure out the best solution.

Escobar & Associates is a leading tax services provider in Austin Texas. We have a team of experts that specialize in Offer in Compromise dealings. If you need our help in resolving your taxation issue then feel free to CONTACT US. You can give us a call on 512-442-3055, Monday to Friday 10 am to 4 pm.