Offer in Compromise Attorney Chicago

Offer In Compromise Attorney Chicago

This could possibly be our most common phone call: “Can you negotiate my debt? I heard the IRS takes pennies on the dollar.”

The answer is yes or no depending on your financial situation. Let’s take the following scenarios assuming the taxpayer owes $70,000.00 in tax liability:

1. Alex

Alex has a net worth of $100,000.00 and he earns about $65k/year; no kids; no wife. If Alex attempts an OIC, he will fail. He has savings more than enough to pay off the debt. Then, he earns about $3800/mo after taxes which gives him the opportunity to make an $800.00 payment to the IRS per month. FAIL.

2. Bob

Bob has a net worth of $100,000.00 and he earns about $30kyr; no kids; no wife. If Bob attempts an OIC, he will fail. He has savings more than enough to pay off the debt. His monthly income is below the IRS threshold for living, but his savings ruin his chances. FAIL.

3. Cyrus

Cyrus has a net worth of $0.00 and he earns about $100,000k/yr; no kids; no wife. If Cyrus attempts an OIC, he will fail. He earns well over the IRS threshold of income for an OIC on a monthly basis. FAIL

4. Dave

Dave has a net worth of $0.00 and he earns about $30k/yr; no kids; no wife. If Dave attempts an OIC, he is a STRONG CANDIDATE. He has no money to pay the debt today and it is doubtful that he can pay it back in the future.

I hope this sheds light on the OIC process. Call our office to see if you qualify.

Mansoor Ansari J.D., LL.M TAX Attorney