Things You Should Avoid Doing If You Apply for

an Offer in Compromise

Offer in compromise or known as OIC is a program offered by the IRS. It is used for qualifying
taxpayers to clear a debt at a lower rate than what is owed. A checklist form is used to define
what a persons eligibility is. This programs objective is to assist in future filing and payments
by finding a compromise best to both parties interest, thus, the government and taxpayer.
You might qualify to apply for this program when the amount you owe for unpaid taxes is
estimated to realistically be so high, that you would never be able to pay it back. However, a lot
of these applications may be rejected by the IRS for different reasons.

Avoiding any of these pitfalls when you request an OIC may save you
money and time.
Avoid accumulating extra tax debt when your OIC is pending
It can take the IRS between six to twelve months to process your request. During this period, it
is best to not accumulate extra debt to your bill as the IRS does not like it. Generally, its
referred to as phenomenon pyramiding. Many offers were wrecked while waiting for the
outcome due to taxpayers failing to make their estimated quarterly payments. Its important to
stay up-to-date with current filings, plus payments while an offer is still pending. Therefore,
you should get in a habit to file and pay when its time.
If your offer is accepted, you should not fail in filing or paying taxes for the next 5 years
Its very important to file and pay taxes for the following five years after your OIC was
accepted. Failing to do so may result in your forgiven debt of taxes being piled back on, plus
interest and penalties. It will be tragic if you fail to file taxes in the fourth year just to discover
that thousands are added back onto your tax bill.
You should appeal a good offer that is denied

The appeals program for collections might change the game for offers that otherwise are good.
A lot of taxpayers may not realize that its possible to appeal when a good offer is denied.
Additionally, many might not understand the procedure of appealing a denied offer. Its good to
get fresh eyes looking at your offer when you appeal. Most of the time, the acceptance rate for
offers are about a third. This is due to taxpayers not having the knowledge of the appeal
program. Seek help from a tax professional whose success rate is higher than average in
general.
Its important to not reject alternatives when its unlikely for you to get a successful OIC
OIC may be a powerful collection tool, yet, there are alternative options as well. Remember this
if it seems that your offer is not going to be acknowledged. There may be a number of reasons
for this such as a high value of assets or equity you may have. There is another program called
PPIA or partial pay installment. This can accomplish similar results to the OIC program. If it
seems your IOC may not realize, speak to a professional for assistance with PPIA.
Dont be inflexible and rude towards an offer examiner
There are many human elements that are involved in the process of OIC that should be
considered. Remember, to achieve things in life, honey is more effective than vinegar. To put it
simply, when an examiner of the IRS seems to not like you, its possible that he/she will be less
favorable to your problems.
Ordinarily, they are professional, courteous, as well as cooperative. Most may give you
additional time for rounding up extra documentation as it takes some time for the IRS to process
an offer.
Sometimes, the examiner might even suggest additional solutions that are creative during this
process, as long as they understand and know you are honest and standing your ground politely.
However, by losing your cool or getting frustrated, resulting in you treating them with less
respect for the trained professional they are, they may lose any flexibility towards your offer.
Make sure your OIC is handled by an experienced professional tax attorney

If assistance if your application has been rejected previously or you feel unsure about going the
process alone. Its important to contact an experienced professional tax attorney to assist you
with the correct information and services, as in most cases it will make the difference in
whether you get your application approved or not.