Minnesota: Don't waste your time on Offer in Compromise "OIC" if you.?

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Education & Training with FishCoin Tax Solutions IRS 00139079-EA

Offer in Compromise (OIC) is a program administered by the Internal Revenue Service which allows taxpayers to settle their tax debt for less than the full amount they owe— essentially allowing them a fresh start with the IRS.In the past years, more than 50% of OIC applications received by the IRS are rejected. Here is a quick guideline to determine if you a good candidate for an Offer in Compromise.


1. Taxpayers not in compliance i.e If the taxpayer is not current with the current tax obligations like estimated tax payments, payroll  taxes, have unfiled tax returns.The taxpayer is not a good candidate for  OIC. Furthermore, the taxpayer have to be in tax compliance and main compliance for next 5 years after the offer have been accepted. 


2. The taxpayer have the ability to fully pay the tax debt. The IRS will not consider an OIC if the taxpayer shows the ability to full pay the liability within the time remaining on the statute.i.e  the taxpayer have enough income or asset to pay the tax debt.


3.The taxpayers have a dissipated asset. A dissipated asset is an asset that was sold or transferred by the taxpayer which should have/could have been used to pay the IRS.
For example,you owe the IRS $75,0000, you offer $35,000 to settle the debt. Last year you sold stocks for a gain of $20,000 which you use to pay a personal loan to friend. The IRS will reject your OIC because they believe you have a dissipated asset.

A qualified tax proffesional can help you navigate the obstacles and pitfalls to make sure you OIC application is properly filed and have a better chance of acceptance.If you or someone you know has unfiled tax returns or some other federal or state tax issue such as Payroll, Sales tax, please feel free to contact me at either (612) 216 3565 or by email at joe.alabi@fishcointax.com.

 

Joe Alabi EA MAcct(Taxation)

FishCoin Tax Solutions

Ph. (612) 516 – 5878

Fax (651) 419 -2021

www.fishcointax.com

Email : info@fishcointax.com

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