Stopping an IRS Levy can be a real change, at best. The Offer In Compromise (OIC) may be right for you. Anyone who has ever faced the prospect (or reality) of the IRS threatening to seize their assets knows how painful it is to owe money to the tax-collecting agency. It’s even more painful when your hard-won assets are taken from you. Both financially and emotionally, there are few situations more draining than digging yourself out of government debt.
Like with so many things, prevention is better than treatment. Working with professional tax preparers like Business and Financial Solutions can help you avoid this situation altogether. Sometimes other options, such as payment plans, can be the best route to stop the financial burden.
It’s important to first understand what an Offer in Compromise entails. An OIC is a program authorized by the IRS that allows qualified individuals to negotiate a lower sum to pay back taxes and consequently clear debt. One reason the government may agree to an OIC is based on comparing the amount owed to the tax payer’s income and assets. It’s not intended as an easy way for super wealthy individuals to get out of paying their taxes. It seems clear that the program emphasizes individuals who are struggling financially.
Depending on your situation, an offer in compromise may be the best route to clearing up back-taxes and potentially saving you huge sums of hard-earned money. The opportunity to settle the debt you owe and get the IRS off your back for good is invaluable. After all, a debt with the federal government isn’t just more money you owe; it’s the risk of having your assets seized. That’s why BFS agents are often presented with the question: does an OIC stop an IRS levy?
The answer is ‘yes’ (but with caveats, of course).
According to IRS Form 656 Booklet, which describes Offer in Compromises in detail, “The IRS may levy your assets up to the time that the IRS official signs and acknowledges your offer as pending. In addition, the IRS may keep any proceed received from the levy.” This means that an OIC can be used to prevent a levy from coming to fruition, but whatever has been seized already is lost for good. This is one of the reasons why our philosophy at BFS with any OIC is to act quickly.
Our firm provides expert assistance navigating the details of all tax situations, including the OIC process. The IRS will not accept every application for an OIC, but our policy at BFS is to only accept cases that we determine to have a very high probability of being accepted based on a number of metrics.
Give us a call today at 1-855-557-2222. Let our business be the foundation for your success.
Fairfax County | Mclean | Langley VA | Accotink | Colchester | Mason Neck | Reston | Leesburg | Herndon
Office locations in Rockville, Frederick and Vienna. (Washington DC Metro Area.) Our CPA firm proudly serves clients in all 50 states.
An Offer In Compromise (OIC) could potentially reduce the taxes you owe to the Internal Revenue Service, release an IRS tax levy and prevent the seizure of your assets.