Eau Claire Offers In Compromise Attorney

In certain circumstances, a taxpayer may be able to negotiate a lower payment — or an offer in compromise — with the IRS. An offer in compromise is an agreement between the taxpayer and the IRS in which the IRS agrees to accept less than the full tax debt owed in exchange for a lump-sum payment.

Located in Eau Claire, attorney James G. Moldenhauer has been helping clients throughout Northwest Wisconsin negotiate tax settlements and reduce their tax liabilities through offers in compromise for more than 30 years.

IRS Tax Settlement Through Offers In Compromise

There are many television and radio ads promising to discharge individual's tax debts for pennies of the dollar through offers in compromise (OIC). In truth, OICs can be difficult to negotiate. The IRS has many strict guidelines regarding who qualifies for an OIC, and rigid formulas it uses to determine how much money can realistically be collected from a taxpayer.

The IRS examines the taxpayer's assets, income, liabilities and properties when determining whether to agree to an OIC.

At the Moldenhauer Law Office, we thoroughly evaluate our clients' financial circumstances to determine whether the IRS will agree to an OIC, the predicted amount of the OIC and whether an OIC is the best settlement strategy for each individual client. We then work closely with clients to gather all of the necessary documentation and develop strong positions they need to negotiate the best possible settlement.

Negotiating An Offer In Compromise With The Wisconsin Department Of Revenue

In some circumstances, the state of Wisconsin may also agree to lower an individual's tax debt through an OIC. However, the rules governing these agreements are unique. It is important to consult an attorney who understands the local rules and knows how to negotiate on your behalf.

Requirements Of An Offer In Compromise

In addition to making a lump-sum payment, taxpayers are often also required to complete other requirements such as:

  • Timely file tax returns for five years following the date of OIC acceptance
  • Pay tax liabilities on time for five years following the date of OIC acceptance
  • Timely file and pay estimated and employer withholding taxes for the current tax year

Failure to meet these requirements will result in cancellation of the OIC and the full amount of tax debt will be reinstated.

For help with negotiating a lower tax liability with the IRS, contact offers in compromise lawyer James G. Moldenhauer at 800-380-7225.