Advantages and Disadvantages of an OIC

A resolution to think about if you want to handle your IRS issues is an Offer in Compromise (OIC).

Pros

• An OIC allows you to start over An OIC is a contract with the IRS to forgive the rest of your back taxes while you pay whatever you can and start over.
• Throughout the review period, your wages and assets cannot be seized. Your stress should be lessened significantly.
• When the OIC was honored and you've paid the balance agreed upon, the IRS must release tax liens in 30 days. Filed on public record will be a Notice of Release of Federal Tax Lien. Your credit rating will improve.

Disadvantages

• Your OIC will be public record for a year. Anyone can access your financial information. This could be a problem in the future. If the IRS doesn't accept the OIC, your information remains confidential.)
• If the IRS accepts your offer, provisions of the IRS Code has to be complied with for 5 years.
• The ten-year statute of limitations for collecting taxes is extended from the time the Offer is pending plus sixty days when you submit your OIC. This extension takes effect even if the OIC is rejected. Remember that sometimes it may take the IRS one year to review an OIC. An OIC is accepted, however, if it takes the IRS more than two years to review your OIC.
• If the OIC is accepted, you do not get to question or appeal the tax debt amount.
• You forfeit all tax refunds, including the interest for the tax periods extending through the calendar year that the IRS accepts the offer.
• Disclosure of your entire financial history is required, which might cause more audits if the IRS finds that you were hiding something.
• Your back taxes including penalties and interest will be reinstated in full if you default on the OIC, not including the payments you've made.

Please feel free to contact us at getirshelp.com or by all means call us tollfree at (888) GETMISH 438-6474 We're here to help with all of your problems with the IRS! It's not your fault so call us now!

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