If your company has tax debt, you may have heard of an offer in compromise, or OIC. This offers taxpayers a way to pay less than what is owed to settle tax debt with the IRS. This can give businesses a valuable way to address tax debt, but you must qualify in order to take advantage of this incentive. There is a lengthy and extensive application process to determine whether you qualify. Approval is not guaranteed and will depend on the individual examiner who reviews your form.
The team at Pearson Butler can help you apply for an offer in compromise. Because the firm’s attorneys have extensive experience with this form of tax relief, they can advise you regarding your eligibility right away. If your OIC application was already denied, Pearson Butler can help you file an appeal. Other options can even be considered to handle your company’s tax debt. As always, your needs will come first, and your Utah tax lawyer will work closely with you to create a personalized plan that addresses your taxes.
Find out if your company’s tax debt is eligible for an OIC by calling (800) 265-2314.
Qualifying for an Offer in Compromise
As a business owner, you may qualify for an offer in compromise if:
- All your required tax returns have been filed;
- You’ve received a bill for at least one of the debts included in your offer;
- All tax payments have been made for the current year; and
- If you have employees, you’ve made all federal tax deposits for this quarter.
The Fresh Start Initiative
OIC rules have undergone dramatic changes that allow more people to potentially qualify under a program called the “Fresh Start Initiative.” Business owners may qualify for OICs under this initiative, and this is something that Pearson Butler can consider when determining whether you qualify.
Are Pennies on the Dollar Realistic?
Almost every commercial you see about offers in compromise will talk about how you will only have to pay “pennies on the dollar” of the full amount of your owed tax. This is certainly not unbelievable, as the IRS has been known in the past to accept as little as 1% of the total to pay off the entire bill. It’s certainly a possibility that you’ll only have to pay a few pennies on the dollar, but there’s a complex formula the IRS uses to determine how much should be paid and when.
With this in mind, it’s important to involve a Utah tax attorney so you won’t have any unrealistic expectations about how much money you will actually have to owe.
Serving Clients Across Utah
With decades of legal experience, Pearson Butler is committed to providing the level of counsel you need in the face of serious tax problems affecting your company. An offer in compromise may be just one option to consider. When you come to the firm, you will be informed of all types of tax relief that may be available to you, so you can make the right choice for your needs.
Contact Pearson Butler’s offices in South Jordan, American Fork, or Bountiful today at (800) 265-2314. Pearson Butler serves businesses across Utah.