It hasn’t happened in a decade. Since 2003, the typical cost of an offer in compromise filing has been $150 (though some exceptions apply). However, in August 2013 the IRS proposed regulations to raise the cost of filing an offer in compromise to $186 for filings made on or after January 1, 2014.
What You Need to Know About the Proposed Change
According to the information provided by the IRS with the proposed regulation change, it is important to know that:
- The proposed $186 filing cost of an offer in compromise is less the typical administrative expenses—more than $2,700—the IRS incurs in handling this type of request.
- The $186 offer in compromise fee should be waived if you are making the offer based solely on doubt as to liability, or if you meet certain low income requirements.
- The $186 cost will be applied to your tax liability if the offer is accepted by the IRS.
Thus, the $36 proposed increase in the cost of the offer in compromise filing may not have a significant impact on what you pay to the IRS when all is said and done. This means that an offer in compromised may still be an important (and affordable) solution to consider for your tax problems.
Call an Oklahoma Tax Lawyer Today for More Information
For more information about your possible offer in compromise and about resolving your outstanding federal or state tax problems, please call an experienced tax attorney in Oklahoma today at 800.721.7054 to schedule an initial consultation and please read a FREE copy of our book, The Ultimate Survival Guide for IRS Problems.