by Jay Freeborne , Enrolled Agent
February 3, 2016

Three Different Case Examples of IRS OIC's - illustrated in a video.

If you have a back tax debt with the IRS that you just aren't able to pay, you might qualify to settle your debt with an Offer in Compromise. If you simply don't have the ability to pay back your debt before it expires NOR have the assets to pay it, you just may be a candidate. It's that simple.

The key questions for qualifying for an OIC are:

  1. When does your most recent tax debt expire?
  2. What is the value of your assets (after exemptions and encumbrances are factored in)?
  3. What is your monthly disposable income (income minus expenses )?

If you owe the IRS $50,000.00 and...

  1. Your 2007 tax debt expires in February 2018 - in two years or 24 months.
  2. You have no significant assets: $1500.00 (after exemptions).
  3. Your family is "paycheck to paycheck" but you have $100 a month after IRS "allowable" expenses are factored in.

...then...

  1. Your $100 a month won't pay off the debt in 24 months - CHECK.
  2. Your assets won't pay off what you owe. CHECK.

You qualify! $1500 assets plus $100 (x 12 months) = $2700 Offer in Compromise.

You'll pay your Offer essentially over 11 months. 20% down and 80% paid in roughly 5 to 11 months after that. Your debt will be settled.

Is your tax problem case this simple? Maybe? You can also read how six of our customers got offers with us.

For 30 years, WATAX has been solving every kind of tax problem. Call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you.

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