If you owe back taxes and are unable to pay the full amount, a Tacoma offer in compromise could be a practical solution. This legal process allows taxpayers to negotiate with the IRS and settle their debts for less than what they owe. At Sterbick and Associates, we provide professional tax relief services, guiding Tacoma residents through the complexities of tax negotiations and settlements.
A Tacoma offer in compromise is a structured agreement between a taxpayer and the IRS that resolves outstanding tax liabilities for a reduced sum. The IRS considers multiple factors before accepting an offer, including financial status, ability to pay, expenses, and assets. This solution benefits individuals and businesses facing financial hardship, providing a legal way to reduce tax burdens and achieve long-term relief.
The IRS does not approve every request, making it crucial to present a strong, well-documented case. At Sterbick and Associates, we handle the process meticulously to increase the chances of acceptance.
Eligibility for a Tacoma offer in compromise depends on specific financial and legal factors. The IRS assesses whether paying the full tax debt would create severe financial hardship. Key considerations include:
Income and monthly expenses
Bank accounts, investments, and property assets
Payment ability over time or in a lump sum
Justification of the tax liability if disputed
Those who do not meet the OIC criteria may still find relief through other tax settlement options. Our legal team evaluates each case individually to determine the most effective strategy for tax resolution.
Unpaid tax debt does not simply disappear—it accrues penalties and interest over time. Ignoring IRS collection notices can lead to aggressive enforcement actions, including:
Wage Garnishments – The IRS can withhold a portion of your earnings until the debt is repaid.
Bank Levies – Your accounts can be frozen, restricting access to your funds.
Tax Liens – A legal claim can be placed on your property, affecting your ability to sell or refinance.
Seizure Of Assets – Vehicles, homes, and business property may be at risk.
Taking prompt action to settle tax debt prevents these consequences and provides financial relief.
Applying for a Tacoma offer in compromise requires careful financial analysis, precise documentation, and skilled negotiation. The process involves:
Initial Financial Assessment – A comprehensive review of income, expenses, and assets.
Preparing IRS Forms – Filing required documentation, including IRS Form 656 and Form 433-A.
Negotiation With The IRS – Submitting a well-supported offer and advocating for the lowest possible settlement.
IRS Review Period – The evaluation process can take several months as the IRS examines financial data.
Final Settlement Agreement – Once accepted, the agreed payment resolves the tax debt permanently.
Each step requires detailed financial documentation, and errors can lead to rejection. Sterbick and Associates ensures accuracy in every submission, reducing the risk of delays or denials.
The IRS offers three categories of Tacoma offer in compromise, each suited to different tax situations:
Doubt As To Collectibility – If the taxpayer’s financial condition shows an inability to pay the full tax amount.
Doubt As To Liability – When there is a dispute over the accuracy of the tax debt.
Effective Tax Administration – If paying the full amount would cause undue hardship despite having the financial means.
Determining the right category is essential for success, and our team, members of the Washington State Bar Association (WSBA) and the Washington State Trial Lawyers Association, ensure each case is presented under the most favorable conditions.
Submitting a Tacoma offer in compromise without legal guidance increases the risk of rejection. Many applications fail due to incomplete paperwork, errors, or failure to meet IRS criteria. A tax attorney provides several advantages:
Accurate and compliant submission of all required documents
Strategic presentation of financial data to strengthen the case
Negotiation skills to secure the lowest possible settlement
Protection from IRS collection actions during case review
At Sterbick and Associates, our legal experience in tax negotiations ensures our clients have the best possible representation throughout the process.
If a Tacoma offer in compromise is not approved, other options are available to resolve tax debt:
Installment Agreements – Allows structured payments over time instead of a lump-sum settlement.
Penalty Abatement – Reduces or eliminates penalties due to reasonable cause.
Currently Not Collectible (CNC) Status – If paying is impossible, the IRS may suspend collection efforts temporarily.
Bankruptcy And Tax Relief – In specific cases, tax debt can be discharged through bankruptcy.
We evaluate every client’s financial condition to recommend the most effective tax resolution method.
We use a results-driven approach to help clients achieve favorable tax settlements:
Immediate IRS Intervention – Contacting the IRS to stop collection efforts.
Comprehensive Financial Review – Gathering relevant data to strengthen the case.
Aggressive Negotiation – Using legal expertise to achieve optimal settlement terms.
Final Settlement Execution – Guiding clients through payment arrangements and ensuring compliance.
Unresolved tax debt creates financial uncertainty and long-term legal risks. Taking action today can prevent further penalties and collection efforts. At Sterbick and Associates, we help Tacoma residents secure the best possible tax relief, whether through a Tacoma offer in compromise or an alternative settlement plan.
Applying for an OIC requires proper IRS forms and an in-depth understanding of tax law. We ensure your taxpayer status is clearly outlined in the application, increasing the likelihood of approval. If you are concerned about your tax return, we review your financial documents thoroughly before submission.
If you are considering a tax credit or state tax resolution, our team can determine how these factors impact your ability to qualify for an OIC. The IRS often evaluates whether a tax credit is applicable before finalizing your offer. Additionally, we assist in addressing concerns related to payment structures and pay schedules, ensuring the agreement fits your financial circumstances.
For those facing an audit or needing assistance in resolving IRS tax matters, we offer guidance in filing accurate forms and meeting IRS requirements. Our knowledge of offer amount calculations ensures you submit a reasonable proposal to increase acceptance chances.
If you’re struggling with IRS tax debt, reach out to Sterbick and Associates for expert legal guidance. Our team is ready to help you navigate the tax settlement process.
Call us at 253-265-4695 or send us a message—we’ll respond by the next business day.
Secure your financial future with Tacoma’s trusted tax law professionals at Sterbick and Associates.
The IRS review process for an offer in compromise can take six months to a year or longer, depending on the complexity of your case and the IRS backlog. Working with an experienced tax attorney can help streamline the process.
Yes, the IRS can reject an offer if they believe you can pay more than your proposed settlement. A properly prepared application with strong financial documentation increases your chances of approval.
While not legally required, hiring a tax attorney significantly improves your chances of approval by ensuring proper documentation, handling IRS negotiations, and avoiding costly mistakes that could lead to rejection.
