The Attorney-CPA Advantage in OIC
An Offer in Compromise is not just a financial application; it is a legal negotiation with the federal government. By leveraging our dual-qualifications, we provide a level of representation that standard tax resolution firms cannot match:
Attorney-Led Strategy
We provide attorney-client privilege and a deep understanding of tax law to protect your rights throughout the negotiation.
CPA-Precision Financials
We apply forensic accounting to your Reasonable Collection Potential (RCP), ensuring the IRS uses accurate, localized cost-of-living data rather than generic national averages.
Proven Track Record
Since 1989, we have successfully settled millions in tax debt, often reducing liabilities to less than 10% of the original amount.
Thomas F. DiLullo, Esq., CPA
FAQ
What is an Offer in Compromise (OIC) with the IRS?
An Offer in Compromise is a program that allows taxpayers to settle their tax debt for less than the full amount owed if they qualify based on their ability to pay and financial situation.
Who qualifies for an Offer in Compromise?
You may qualify if you can’t pay your full tax debt, have special circumstances causing financial hardship, or if there is doubt about the amount you owe.
How does the IRS calculate the amount I must offer?
The IRS calculates your Reasonable Collection Potential (RCP) by evaluating your income, assets, and allowable expenses to determine the minimum amount they expect to collect.
What types of Offers in Compromise are available?
There are three types: Doubt as to Liability (disputing the debt), Doubt as to Collectability (inability to pay full amount), and Effective Tax Administration (hardship or inequity cases).
What forms do I need to apply for an Offer in Compromise?
You must submit Form 656 (Offer in Compromise), along with Form 433-A (OIC) or Form 433-B (OIC) to disclose your financial information.
Can I pay my Offer in Compromise in installments?
Yes, the IRS allows payment either as a lump sum within five months or periodic payments over 6 to 24 months during the offer review.
How long does the IRS take to process an Offer in Compromise?
Processing typically takes 6 to 12 months, depending on the complexity of your case and IRS workload.
What happens if my Offer in Compromise is rejected?
You can appeal the decision, submit a new offer, or explore other IRS payment options like installment agreements.
What are common mistakes to avoid when applying for an OIC?
Avoid incomplete forms, missing documentation, inaccurate financial disclosures, and failing to stay current on tax filings and payments.
How can Thomas F. DiLullo & Associates help with my Offer in Compromise?
They provide expert evaluation, prepare and submit your application, negotiate with the IRS, and guide you through the entire process to maximize your chances of acceptance.
What are the consequences if I don’t comply with the OIC terms after acceptance?
Failure to comply can result in the IRS revoking the offer and reinstating the full tax debt, including penalties and interest.
Are there alternatives to an Offer in Compromise if I don’t qualify?
Yes, alternatives include installment agreements, penalty abatements, or requesting Currently Not Collectible status.
How do special circumstances affect my Offer in Compromise eligibility?
Medical expenses, job loss, or other hardships may improve your chances under the Effective Tax Administration category.
Can I use the IRS online tool to see if I qualify for an OIC?
Yes, but the IRS pre-qualifier tool provides only a rough estimate; professional evaluation is recommended for accurate eligibility assessment.
What should I do if I receive an IRS levy or lien while applying for an OIC?
Contact a tax professional immediately to protect your assets and negotiate with the IRS while your offer is under review.