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IRS Offer in Compromise Agreement Fresno

At Valley Tax Law, we understand the financial strain that can result from outstanding tax debt. Our IRS Offer in Compromise Agreement services in Fresno are designed to help individuals and businesses navigate the complex process of settling tax liabilities for less than the full amount owed.

What is an Offer in Compromise?

An Offer in Compromise (OIC) provides a unique opportunity for individuals and businesses to settle their tax debt with the IRS for an amount less than what is owed. This option is particularly beneficial for those facing financial hardships or those unable to pay their full tax liability.

Determining Eligibility

To determine eligibility for an Offer in Compromise, certain criteria must be met:

  • Filed all required tax returns and made necessary estimated payments.
  • Not currently in an open bankruptcy proceeding.
  • Possess a valid extension for a current year return (if applying for the current year).
  • For employers, tax deposits for the current and past 2 quarters must be made before applying.

Application Process

Our team at Valley Tax Law will guide you through the application process. Here’s what you need to know:

  • Preparation: Utilize the Offer in Compromise Pre-Qualifier Tool to confirm eligibility and prepare a preliminary proposal.
  • Required Documentation: Complete the application package, including Form 433-A (OIC) for individuals or 433-B (OIC) for businesses, along with all specified documentation.
  • Forms Submission: Submit the application using Form 656-B, the Offer in Compromise Booklet, with the required application fee of $205 and the initial payment (non-refundable) for each Form 656.

Payment Options

Choose the payment option that suits your financial situation:

  • Lump Sum Cash: Submit an initial payment of 20% of the total offer amount with your application. If accepted, any remaining balance is paid in five or fewer payments.
  • Periodic Payment: Submit your initial payment with the application and continue to pay the remaining balance in monthly installments while the IRS reviews your offer. If accepted, continue monthly payments until the debt is paid in full.

Low Income Certification Guidelines

If you meet the Low Income Certification Guidelines, you may be eligible for certain exemptions, including waiving the application fee and initial payment. Refer to Form 656-B for details.

The Offer Evaluation Process

During the IRS evaluation period:

  • Non-refundable payments and fees are applied to the tax liability.
  • The IRS may file a Notice of Federal Tax Lien but suspends other collection activities.
  • Legal assessment and collection periods are extended.
  • Existing installment agreement payments are not required.

Outcome Scenarios

  • Accepted Offer: Fulfill all terms listed in Section 7 of Form 656, including filing required tax returns and making payments. Federal tax liens are released upon satisfaction of offer terms.
  • Rejected Offer: Appeal within 30 days using Request for Appeal of Offer in Compromise (Form 13711). The IRS Independent Office of Appeals provides additional assistance during the appeal process.

At Valley Tax Law, we are committed to helping you achieve a fair and manageable resolution with the IRS through our IRS Offer in Compromise Agreement services in Fresno. Contact us today to discuss your specific situation and explore your options.

Testimonials

Our Team

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Glen Barber

Senior Tax Consultant

Over 14 years of experience in consulting and tax relief. Responsible for liaising between clients and the resolution team and preparing resolution strategies.

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John Nelson

Senior Tax Consultant

Over 23 years of experience in various fields of business, including banking, human resources, and consulting.

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Aaron Brumfield

Senior Tax Consultant

Over 25 years of experience in marketing and business development. Responsible for helping clients with tax relief and customer service.