Tax Lien Release With An OIC?

If you are dealing with a tax lien you want to get rid of it as soon as you can. Your options for doing so including paying your liability in full, entering an installment agreement with the IRS, or filing for an offer in compromise. The first two options are most common, but this does not mean you should necessarily write off an offer in compromise in the benefits that it offers. You may not qualify for an offer in compromise, and that is fine. But until you look into this option you will never know for sure.

Even though it is not yet as popular as the other ways of releasing a tax lien, filing an offer in compromise is becoming more and more common as the years go by. Generally speaking, this is a legitimate way to “settle” your taxes with the IRS. In other words, an offer in compromise gives you the ability to pay less money than you actually owe. In many cases, if you meet the specifications, the IRS will agree to an offer in compromise. This will result in you paying less money, and of course, your tax lien being released. In the end you will realize that things worked out nicely for you.

The primary purpose of an offer in compromise is to reach a settlement that is mutually beneficial to both the taxpayer and the IRS. But remember, everybody is not going to quality for an offer in compromise. You need to show the IRS that it is more affordable for them to settle your liability than it is for them to chase after what you owe.

The IRS may agree to an offer in compromise if you meet one of the following requirements: doubt of collectibility, doubt of liability, or effective administration in which collection would result in financial hardship for the taxpayer.

If you feel that you meet one of the above requirements, you should consider filing for an offer in compromise to release your tax lien. This may not only get rid of your lien, but also allow you to pay less than you owe.