Monday, March 19, 2018



While the IRS expects you to pay what you owe the federal government each year, it understands you may not have the means to do so. Rather than default on your tax obligation, you could settle your account reasonably by making an Offer in Compromise. You can ensure that the IRS accepts your proposal by avoiding these six common OIC mistakes.

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When you make submit an OIC, you will be expected to disclose to the IRS every last detail about your finances. You must tell how much you earn, how much you have in savings and investments, and what kind of assets you own.


To verify your financial details, the IRS has the option of requesting or securing copies of your:

income earning statements
bank records
financial statements regarding annuities, dividends, and investments
DMV records
With this in mind, you will benefit by being entirely honest and forthcoming with your financial details to avoid having your OIC denied.

The IRS will also scrutinize your spending habits to ensure that they match up with the money you have at your disposal. If it notices you spending huge amounts of cash on vacations, buying consumer goods like electronics, or big ticket items like cars, it may ask you to re-submit information about your income and assets

It may suspect that you have more money than what you originally disclosed with your OIC application and may have more cash to put toward settling your IRS debt. It also may deny your OIC because of your overspending.

Simple mathematical errors can lead to an OIC being denied by the IRS. Whether you fill out the Form 433, which is required for the OIC proposal, or you allow a CPA or an EA to fill out the form on your behalf, it is crucial that you check it for math mistakes.

Simple miscalculations like not adding up basic figures correctly are simple mistakes that can doom your OIC. Before you submit the Form 433 to the IRS, you should go over the numbers again and make sure that they are correct to prevent it from being denied.


When the IRS receives a Form 433 for an OIC that is not fully filled out, it has no choice but to deny it. Spaces that are left blank without explanation can cause the IRS to wonder if your or your CPA or EA is hiding information or simply does not understand what kind of information is required from you.

You can clear up any questions about filling out the form and avoid leaving spaces blank by referring to the IRS website. You can also submit a fully filled out Form 433 by hiring a tax professional who is experienced in submitting and overseeing OICs for past due taxes.

As your OIC is being considered, you are required to continue submitting your tax returns on time. If you fail to file taxes by the April 15 deadline, you put your OIC in jeopardy of being turned down.

You may think it best to hold of filing because you cannot afford to pay the taxes that you owe that year. However, to avoid the OIC being denied, you should file your taxes even if you cannot pay what you owe. The new tax debt could be included with the OIC in some circumstances if you file your returns on time as required.


The IRS has 10 years to collect on tax debts that taxpayers owe to the government. However, that timeline can be disrupted if you take certain actions of your own like:

filing for bankruptcy
filing an OIC
requesting an installment agreement
defaulting on an installment agreement
Before you submit a new OIC, you should verify whether or not the tax debt is still active or if it is past its statute of limitations. If you are unsure of how to accomplish this, you can hire a tax professional who can then obtain copies of your tax records. Based on the current information, your tax pro may then be able to complete and submit an OIC on your behalf.

An Offer in Compromise can be your best option for resolving a past due tax debt. However, the IRS requires you to comply fully with filling out the forms and making the official request. By avoiding these six common mistakes, you better your chances of having your OIC approved the first time you submit it.

Whatever you do, don’t duck the IRS if they should come calling. Enlist a tax pro if you’re unsure of how to respond to an audit notice.

Advance Tax Relief offers an experienced team of tax professionals who specialize in working directly with the IRS to solve difficult tax issues for businesses as well as individuals with back taxes or other tax issues. Contact us today at 800-790-8574 for more information or to schedule a consultation.

Call us now at 800-790-8574 or email

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So, if you have IRS Problems, Owe Taxes, have Past Due UnFiled Tax Returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574


If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers, wage garnishment release, bank levy release, tax audit representation, back tax return preparation and the IRS Fresh Start Initiative. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back taxes.  

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

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