Austin Tax Blog


Many of us request IRS an Offer in Compromise but often we end up damaging our offer that leads to rejection of the OIC application. Find here, some of the ‘don’ts’ associated with an IRS Offer in Compromise. These practices improve the chances of getting your OIC accepted and unburdening you of the taxes.

Find Here, What Not To Do With IRS Offer In Compromise:

Stay away from tax debt: While your OIC application is still pending for approval, you need to make sure that you don’t accumulate more tax debt. Tax experts suggest that normally IRS takes two years to respond to the application. During this time if you are irregular with your tax payments then they consider this behavior as a sign of lethargy and reject IRS OIC application. Create a habit of filing taxes from the start and continue it for as long as possible.

Don’t become irregular with tax payments after OIC approval: Even when you succeed in getting IRS OIC approval, you shall not stop paying taxes. If you do so within five years of acceptance of OIC application then IRS will roll back taxes along with additional penalties and interest. So, be regular with your taxes!

Don’t stay away from questioning the denial of a legit OIC application: If your tax service provider has requested a good Offer in Compromise and it happens that IRS turns it down then you have a right to know the reason. You can appeal against the denial of OIC application to know what went wrong. Ask the best tax service provider in Austin to help you with the Offer in Compromise appeal process.

Do not withdraw an OIC application: Ask your tax expert to stick to the plan and do not withdraw a good OIC application. Wait for the IRS OIC timeframe and have patience. As Offer in Compromise is not suitable for one and all, they may take time to respond. In that case, you need to wait and watch but certainly not withdraw.

Don’t forget to document solid explanations: Offer in Compromise is not just about saving you from taxes. It needs authentic records and documents to suggest that you are either bankrupt or financially incompetent to pay your taxes. You need to have strong documents and legal proof while making the offer. Present cover letters and solid explanations suggesting your inability to clear the tax debt.

Don’t forget to try other solutions: If your OIC application is not solid or if the circumstances force you to let go of the OIC then you should not stop from thinking of alternate solutions. Try alternatives like Partial Pay Installment (PPIA) if the application is rejected or if IRS Offer in Compromise appeal is denied. Ask your tax expert to devise solution that is valid and easy on the pocket.

Don’t try OIC application by yourself: Well, let the tax experts manage things for you. As there is a small number for Offer in Compromise success stories don’t take it as your DIY project. Take help of professional tax service providers in Austin instead of just playing with IRS OIC calculator. It is a systematic approach and thus needs expert supervision so, don’t manage it on your own.

The above mentioned Offer in Compromise tips should be followed to ensure that your IRS OIC is approved. Apart from these, you should discuss the case with a tax expert to know the current taxation rules and study the Offer in Compromise guidelines. Failing to do so may lead you to heavy penalty from the IRS and it would take away all the tax liens. So, avoid anything that damages IRS OIC application.

Escobar & Associates is one of the leading tax service providers in Austin Texas and we are ready to sort out all issues with your IRS OIC application. If you are planning to request OIC then feel free to leverage our services. In case, you are stuck up somewhere then feel free to CONTACT our team of tax experts on 512-442-3055, Monday to Friday 10 am to 4 pm.