OIC 101: What Can I Offer?

This would be a comical subject if it were not such a serious problem. I would not be exaggerating to say that over 3/4 of the OICs I see offered probably should have been given a second look. The amount offered often looks like the taxpayer and the CPA sat across from each other and said "what do you feel like you want to offer them?" As if they were buying a house.

Another trend is to offer too much, usually due to lack of information and expertise. When I have browsed through our software system and the minimum offer amount is revealed, it is usually lower than the client's proposed amount (originating from advice from non "tax resolution" sources). This is an expensive way to play darts and hope you hit a bull's eye. If you have filed an OIC and you did not consult a Professional tax resolution firm, withdraw your offer immediately, BEFORE you get a denial letter. All minimum offer amounts must generally be equal to, or greater than, a taxpayer's reasonable collection potential (RCP). The RCP is defined as the total of the taxpayer's realizable value in real and personal assets, plus future income. Sound like you could just whip that data up real quick? Right.