Offer in Compromise for Florida Taxpayers
Florida's asset protection laws can work in your favor when calculating an Offer in Compromise. Here is how.
An Offer in Compromise lets you settle your IRS debt for less than the full amount. The IRS calculates your Reasonable Collection Potential — what they think they can collect — and that becomes the minimum offer they'll accept.
Florida taxpayers have specific advantages in this calculation. Florida's unlimited homestead exemption means the IRS may exclude your home equity from the RCP calculation in certain circumstances. Florida's retirement account protections can similarly reduce the asset portion of the formula. And Florida's lack of state income tax means more of your income is available for federal resolution.
The Process
An OIC takes 6-12 months. You submit Form 656 with a detailed financial disclosure, pay a $205 application fee, and begin making proposed payments while the offer is pending. If accepted, you pay the agreed amount and the rest is forgiven. If rejected, you can appeal.
Not everyone qualifies. If you want to know whether an OIC is realistic for your situation, let me run the numbers. I'll tell you straight.
I've spent 32 years resolving IRS tax debt for people across Southwest Florida. Free consultation — I'll tell you exactly where you stand.
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