OIC 101:How Do You Eat An Elephant?

There are many misconceptions concerning OICs. I would have to say one of the biggest is how you take care of such a large debt, or elephant. There is an old saying or question: "how do you eat an elephant?"

Answer... one bite at a time! Most people who qualify for an OIC are dealing with large liabilities which seem overwhelming.

"Taxpayers may choose to pay the offer amount in a lump sum, in monthly payments over the remainder of the statutory time allowed for collection, or a combination of a lump sum and monthly payments. Generally, it is to the taxpayer’s advantage to pay the amount in the shortest time possible because longer payment terms will require a larger offer amount."

A professional tax resolution firm can look at your finances and advise you on the pros and cons of any option you are considering. Many taxpayers who don't consult a tax resolution firm run the risk of accepting terms dictated by either the Treasury who only have their own interests at heart or a third party with little or no knowledge of the potential long-term effects of the different options available.