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IRS Offer in Compromise Assistance

What is an IRS Offer in Compromise?

An Offer in Compromise is an agreement with the IRS that allows you to pay less than the full amount of your tax debt if you qualify. The IRS accepts an offer based on your ability to pay, your assets, income, and special circumstances that may create financial hardship

Client Testimonials

“Mr. DiLullo reduced my tax liability to below 10%.”

Josean Colina


“My $250,000 tax debt was dismissed thanks to Mr. DiLullo’s expertise.”

Dave DeVincenzo

 

“We settled for a small fraction of the amount owed.”

Jason Elischer

Why Choose Thomas F. DiLullo & Associates?

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Our experienced team is here to provide personalized solutions for your unique tax situation. Take the next step and start resolving your IRS problems and regain your financial peace of mind.
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  • Unique combination of tax law and accounting expertise

  • Personalized assessment of your financial situation

  • Extensive experience with hundreds of successful OIC cases

  • Skilled negotiation with the IRS to get the best possible settlement

  • Guidance through the complex application process, including Form 656 and financial disclosures

  • Best offer in compromise acceptance rate in the industry

  • Unparalelled Tax Law expertise

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How We Help

  • We'll determine your eligibility for an Offer in Compromise

  • Calculate your reasonable collection potential (RCP)

  • Identify special circumstances that will improve your chances

  • Prepare and submit your application with all required documentation

  • Negotiate payment options: lump sum or periodic payments

  • Ensure compliance with IRS terms after acceptance to avoid future issues
     

Payment Options

  • Lump Sum Offer: Pay 20% of your offer amount upfront, with the balance due within five months.

  • Periodic Payment Offer: Make monthly payments over 6 to 24 months while IRS reviews your offer.
     

Important Considerations

  • You must be current on all tax filings and estimated payments.

  • The IRS requires compliance for five years after acceptance.

  • The IRS pre-qualifier tool may underestimate your eligibility; professional evaluation is crucial.
     

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Explore More About Offers in Compromise

For a deeper understanding, check out our detailed articles and resources on:

Offer in Compromise 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.

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