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Michael L. Davis
Enrolled Agent, OIC Specialist
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Offer in Compromise (OIC) and IRS Straight Talk
Get straight talk and competent advice from a retired IRS OIC Specialist.
Caution! Do not be misled: Many people do not qualify. The Offer in Compromise (OIC) process is long and difficult, and the Internal Revenue Service rejects the great majority of the offers it receives.
Annually, the IRS accepts approximately 14% of the Offers in Compromise it receives. That's down from over 17% in 1997 through 2001. Why? Former IRS Commissioner Mark Everson, who served from 2002 through 2007, disliked OIC acceptances and did much to discourage them. By doing so, he also discouraged OIC submissions by ethical tax professionals, who choose not to accept a fee for submitting an OIC which the IRS very probably will reject. As a result, there has been a big drop in the number of OICs received annually by the IRS.
I operate a one man IRS tax liability resolution practice. For
that reason, I must be selective in accepting new clients, and I,
personally, provide all services to my clients.
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OIC Facts
Annually less than 1% of all delinquent federal tax accounts were resolved through the IRS's acceptance of an Offer in Compromise.
IRS Executive Cheryl Sherwood in a speech to
tax professionals at the IRS Nationwide Tax Forum, Atlanta, Georgia.
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