Sunday, January 3, 2010

Celebrity Tax Expert Roni Deutch Answers Common Questions About The IRS Offer In Compromise Program

The Tax Lady Roni Deutch is continuing her efforts to educate the American public on taxes, and tax debt relief. Ms. Deutch has published a list of answers to the most common questions about the IRS' OIC program.

North Highlands, CA (PRWEB) January 3, 2010 -- Famed tax attorney Roni Deutch is hoping to help taxpayers by providing information about one of the IRS's most popular tax resolution programs, the Offer in Compromise.

"Every day dozens of taxpayers call my law firm looking for answers to their IRS tax debt questions," explains The Tax Lady Roni Deutch. "One of the programs we receive the most questions about is the IRS Offer in Compromise (OIC) program. Since so many taxpayers get confused about this IRS tax resolution option, I have published a list of detailed answers to the ten most popular questions about Offers in Compromise."

What is an Offer in Compromise?
An OIC is an IRS tax resolution program that allows a taxpayer to settle their IRS back tax liability by paying less than they owe. The amount a taxpayer needs to pay will vary depending on each taxpayer's unique financial situation, as well as his or her original liability amount. However, the amount the taxpayer will need to pay is usually significantly less than the tax debt owed. The IRS will only accept a taxpayer's OIC if it is equal to or greater than the reasonable collection potential, which is the IRS's measurement of the taxpayer's ability to pay their debt. Most taxpayer's will not qualify for this program.

Can I hire someone to help prepare an Offer in Compromise?
Yes, you can hire a tax attorney or a tax resolution professional to prepare and submit an OIC for you. However, submitting an OIC does not guarantee that it will be accepted. You must meet certain financial and other criteria in order to qualify.

What fees will I have to pay when I submit my Offer in Compromise?
You will need to pay a $150.00 application fee, as well as a check or money order for 20% of the lump sum offer.

What will happen if I submit my Offer in Compromise without the 20% payment?
If you submit your offer without the 20% payment, then the IRS will reject your offer as not processable, and will return your OIC application and $150.00 application fee back to you.

Is there any way to submit my Offer in Compromise without the application fee or 20% payment?
Yes, the IRS will allow you to submit an OIC without the $150.00 application fee or the 20% payment if you meet the IRS's low-income taxpayer requirements. For more information about who qualifies as a low income taxpayer, check out this page on the IRS' website.

Will an Offer in Compromise remove a wage garnishment or bank levy?
Having an OIC accepted will not automatically remove a wage garnishment or bank levy. However, an accepted OIC will resolve your tax liability with the IRS so that you can request to have your garnishment or levy released.

How long does it take for the IRS to decide on an Offer in Compromise?
It can take the IRS several months to review your OIC. Additionally, once the IRS performs an initial review, they may have questions or require clarification from you regarding some of the representations that were made in the OIC. As such, there is really no way to tell how long it will take for the IRS to respond to your OIC.

The paragraphs included above are only a few of the questions answered on Deutch's law firm's website. To read the full list, check out[10 FAQs About IRS Offers in Compromise on the Roni Deutch Tax Relief Blog.

Millions of people recognize tax attorney Roni Deutch as The Tax Lady®. She has been helping taxpayers nationwide resolve their tax liabilities for over 18 years. As an industry leader, she has saved her clients tens of millions of dollars and has helped thousands of families settle their back taxes. To learn more about The Tax Lady Roni Deutch, you can visit her blog or YouTube profile.

About Roni Deutch, A Professional Tax Corporation
Roni Deutch, A Professional Tax Corporation is a nationally recognized law firm that has been helping clients find solutions to their back tax liabilities for over 18 years. To find out more about the law firm or its IRS tax relief services, visit their website at or call 1-888-TAX-LADY.

The Tax Lady's Guide To Beating The IRS And Saving Big Bucks On Your Taxes
(BenBella Books, February 15, 2009, Paperback Price: $16.95, ISBN 978-1-933771-77-9)


Nicole Elton
Roni Deutch, A Professional Tax Corporation
877-232-8477 Ext. 2410


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