IRS Audit & Tax Resolution Services.

An “offer in compromise” (OIC) is a program offered by the IRS that allows eligible taxpayers to settle their tax debt for less than the full amount owed. It is a potential option for individuals or businesses facing significant financial hardship and unable to pay their tax liability in full.

When submitting an offer in compromise, taxpayers propose a specific amount they can afford to pay based on their financial situation. The IRS will review the offer and consider factors such as the taxpayer’s income, expenses, asset equity, and ability to pay.

However, it’s important to note that the offer in compromise process can be complex, and not all offers are accepted. Seeking professional assistance from a TPI Group tax expert can help navigate the process, increase the chances of a successful offer, and ensure compliance with IRS guidelines.

A partial payment installment agreement (PPIA) is an arrangement between a taxpayer and the IRS that allows the taxpayer to pay off their tax debt over time, but at a reduced amount. Unlike a traditional installment agreement where the taxpayer pays the full amount owed, a PPIA allows for a partial payment based on the taxpayer’s financial situation.

Under a PPIA, the taxpayer makes regular monthly payments towards their tax debt, taking into account their income, expenses, and assets. The agreed-upon monthly payment is typically lower than the total amount owed, providing the taxpayer with some relief. However, it’s important to note that interest and penalties continue to accrue on the remaining balance.

A PPIA can be a beneficial option for taxpayers who are experiencing financial hardship and are unable to pay their tax debt in full. It allows them to address their tax liabilities while managing their day-to-day expenses.