Jay Freeborne

by Jay Freeborne, Enrolled Agent

In our 30 year plus history of settling IRS debts, we've assisted on every kind of Offer in Compromise (OIC) you can imagine and have accumulated some fun facts.

Did you know that you can still get an OIC if you have equity in your home?

Sure. For one you can value your house at 80% in your OIC and furthermore if you get loan denials you can exclude some equity from your OIC.

When is making payments to the IRS better than an OIC?

If your debt is expiring soon, you don't want to do an OIC. Let the debt expire and stay in that payment plan until the debt drops off.

Can filing an OIC actually hurt you?

Most definitely. If you clearly don't qualify for an OIC, don't do it! Filing an OIC freezes the statute of limitations clock on your debt for the duration of the OIC processing. For some that might not be fatal, but if you don't qualify for an OIC - why freeze nine months on the statute clock for no good reason!

Do you have to be poor to qualify for an OIC?

Not necessarily and especially if you owe a ton of money! This blog post illustrates how a $250,000 incomer settled his $1.7 million debt with our help for $59,000.00.

Want to trouble-shoot your tax problem? The experts at Washington Tax would love to hear from you. EMAIL us a description of your tax issue and we'll contact here. Or call us at 1-888-282-4697 Monday to Friday.

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