Tax debt can be overwhelming, especially when that debt is significant. If you are unsure where to turn for help, the attorneys at Dayes Law Firm could help you find a solution. One possible solution is an IRS-offered program called an Offer in Compromise (OIC), which allows certain taxpayers to settle their tax debt for less than the full amount owed.
While the OIC program offers hope, document preparation for IRS Offer in Compromise in Phoenix is complex and requires meticulous preparation to demonstrate your eligibility and financial situation. If you do not know where to start and want to explore an OIC, a skilled tax resolution lawyer from Dayes Law Firm could be your most valuable asset. Whether it is evaluating your options, preparing the necessary documents, or guiding you through the entire process, our experienced attorneys are here to help.
What Is an Offer in Compromise (OIC)?
An OIC is an agreement between a taxpayer and the IRS to settle the taxpayer’s assessed tax liability for less than the amount owed. The reason that the IRS would accept anything less than what is owed depends on whether the IRS feels it could collect on the account, with the IRS generally accepting an OIC where it is doubtful they could otherwise collect the full amount owed.
The IRS may also consider an OIC when collecting the full amount owed would create significant financial hardship for the taxpayer. With an OIC providing a fresh start for taxpayers struggling with overwhelming tax debts, call Dayes Law Firm in Phoenix for help preparing your OIC documentation.
What Documents Are Needed for an OIC?
Before considering an Offer in Compromise application, the IRS requires extensive documentation to provide a comprehensive picture of your financial situation, including your income, expenses, assets, and liabilities. The key documents you need to gather include the following:
- Form 656 initiates the OIC process and provides information about your tax liability and proposed offer amount
- Form 433-A (OIC)—a Collection Information Statement for wage earners and self-employed individuals to provide income, expenses, and asset details
- Form 433-B (OIC)—a Collection Information Statement for business owners to provide business finance details
- Financial statements such as recent bank statements, pay stubs, and other financial documents to support the information provided
- Tax returns for the past several years
In addition to these forms and documents, other supporting documentation such as proof of hardship, medical records, or other relevant information may also be necessary or advisable. Call Dayes Law Firm in Phoenix for advice and help to prepare your OIC documentation for the IRS.
How We Could Help With Document Preparation
Preparing the necessary documents for an OIC may seem daunting and overwhelming. A skilled Phoenix attorney could provide invaluable assistance with your OIC application by ensuring that your IRS documents are accurate and complete.
A clear picture of your financial situation could help us determine a reasonable offer amount based on your ability to pay and the IRS’s guidelines. Once an OIC is made to the IRS, your attorney could communicate with the IRS on your behalf and negotiate a favorable settlement. However, if your OIC is rejected, Dayes Law Firm could represent you in the appeals process and try to reverse the denial.
Call a Our Attorneys for Help in Preparing Your IRS Offer in Compromise Documentation in Phoenix
If you are struggling with tax debt and need help, the knowledgeable attorneys at Dayes Law Firm could guide you through document preparation for IRS Offer in Compromise in Phoenix. They could help ensure your application is strong and complete, and advocate for your best interests with the IRS. Do not let tax debt control your life—take action today and seek the legal assistance you need to resolve your tax issues and achieve financial peace of mind.
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