The Offer in Compromise (OIC) program is a program whereby the IRS and State will accept less than the full amount owed. This program is very complex and requires a tax professional like those at Redding & Associates. The IRS is offering this one opportunity to settle past amounts due.

An Offer In Compromise is an agreement between yourself and the IRS or State that resolves your tax debt for less than the amount owed. A tax debt can be legally compromised for one of the following reasons:

1. Doubt as to Liability: Doubt exists that the assessed tax is correct.

2. Doubt as to Collectability: Doubt exists that you could ever pay the full amount of tax owed.

3. Effective Tax Administration: There is no doubt the tax is correct, and no doubt that the amount owed could be collected, but an exceptional circumstance exists that allows the IRS to consider a taxpayer's OIC.

You can compromise all types of taxes, penalties, and interest. Even payroll taxes can be compromised. The IRS accepts approximately 25% of all offers filed. If Redding & Associates can show that you qualify for this program, you can save thousands of dollars in taxes, penalties and interest.

Things to keep in mind:

* You must be compliant for two consecutive quarters (6 months) before an offer can be submitted. You will submit 3 months backup for the 433-A

* The advantage of and OIC is that the amount paid may be considerably less than what is actually owed, all principal and interest stops accruing and enforced collection is suspended.

* The disadvantage is that you are on tax probation for 5 years. Any failure to file and pay your taxes on time will void the OIC