Offer in Compromise Lawyer in Maryland:

Find Tax Relief with a Fresh Start

Are you facing overwhelming tax debt to the IRS or the State of Maryland? You’re not alone. Thousands of Maryland residents struggle with tax burdens they can’t afford to pay in full. An Offer in Compromise (OIC), whether at the federal or state level, could be the lifeline you need.

Tax Relief Counsel: Your Maryland Advocates for Tax Relief

Dealing with the IRS or the Maryland Comptroller’s Office can be overwhelming, especially when you’re facing a significant tax liability. At Tax Relief Counsel, we understand the intricacies of both federal and Maryland tax law, as well as the stress these situations can cause.

Our founder, Ramy Shabana, is a seasoned tax attorney with a proven track record of securing tax relief for Maryland residents, including successful Offer in Compromise negotiations at both the federal and state levels.

Whether you owe back taxes to the IRS or the State of Maryland, our team is committed to exploring all available avenues for relief and guiding you toward a fresh financial start.

What Is an Offer in Compromise (OIC)?

An Offer in Compromise (OIC) is a legal agreement that allows you to settle your tax liability for a lower amount than what you originally owed. It’s available for both federal taxes (owed to the IRS) and in some cases, for state taxes (owed to the Maryland Comptroller’s Office). This option is for taxpayers facing significant financial hardship or those who have a legitimate dispute about the amount of tax owed.

Are You Eligible for an OIC in Maryland?

Qualifying for an OIC involves meeting specific guidelines set by the IRS or the Comptroller of Maryland.

Federal Offer in Compromise (OIC) Eligibility

To qualify for a federal Offer in Compromise (OIC) with the IRS, you must meet specific criteria. Here are the key factors the IRS considers:

Delinquent Tax Liability: You must have a delinquent tax liability that has resulted in an assessment.
Exhausted Appeals: You should have exhausted all avenues of administrative appeal.
Time Requirement: Typically, at least two years must have passed since you became liable for the tax.
No Open Bankruptcy Cases: You cannot have an open bankruptcy case or be under an IRS audit.
Tax Compliance: All required tax returns must be filed.
Business Status: If applicable, your business must be closed.
Financial Situation: The IRS will evaluate your income, expenses, assets, and overall financial situation. You need to demonstrate that you lack the resources to pay the tax liability in full or cannot apply future resources to it.

The IRS evaluates these factors to determine whether accepting your offer is in their best interest.

State (Maryland) Offer in Compromise (OIC) Eligibility

Maryland also offers a state-level Offer in Compromise (OIC) for taxpayers who owe back taxes to the Comptroller of Maryland. The eligibility criteria and process differ slightly from the federal level:

Eligibility: To qualify for a Maryland OIC, you must have an outstanding tax liability assessed by the Comptroller of Maryland.
Financial Hardship: You need to demonstrate significant financial hardship that makes it impossible to pay the full tax amount. This includes providing detailed financial documentation to support your claim.
Compliance with State Tax Laws: You must be compliant with all state tax filing requirements.
Exhausted Appeals: Similar to the federal process, you should have exhausted other administrative remedies before seeking an OIC.
Legitimate Dispute: If applicable, you may need to demonstrate that there is a legitimate dispute about the amount of tax owed.

In Maryland, you will need to submit a written request to the Comptroller’s office, including all relevant financial information and a detailed explanation of your situation. The process can be complex, and having a knowledgeable Maryland tax attorney can greatly improve your chances of a favorable outcome.

Don't Wait — Find Out Whether an OIC Is Right for You

Schedule a free consultation with our Maryland OIC lawyer today. We’ll evaluate your eligibility for an offer in compromise, answer any questions you have, and help you start down the path to potential tax relief.

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(202) 630-4095

Types of Offers in Compromise

Both the IRS and, in some cases, state tax authorities offer different types of Offers in Compromise (OICs) depending on the taxpayer’s circumstances.

Federal OIC Types

At the federal level, the IRS recognizes three main types of OICs:

Doubt as to Collectibility (DATC): This type is most common and applies when you can prove that you lack the financial resources to pay your full tax liability, even with a payment plan. The IRS will look at your income, expenses, assets, and overall financial situation to determine your ability to pay.
Doubt as to Liability (DTL): This type of OIC is used when there’s a legitimate dispute about the amount of tax you owe. You must present strong evidence to support your claim, such as documentation of errors in IRS calculations or a legal basis for challenging the assessment.
Effective Tax Administration (ETA): This is the least common type of OIC and applies only in exceptional circumstances where collecting the full tax liability would create an undue hardship or be considered inequitable. This often involves situations where the taxpayer is facing severe health issues, economic devastation, or other extenuating factors.

State (Maryland) OIC Types

Some states, including Maryland, may offer OIC programs at the state level. In these cases, the types of OICs often mirror the federal categories:

Doubt as to Collectibility (DATC): Similar to the federal version, you must demonstrate your inability to pay the full amount of state taxes owed due to financial hardship.
Doubt as to Liability (DTL): If you believe the state has incorrectly assessed your tax liability, you can pursue a DTL OIC, providing evidence to support your claim.
Exceptional Circumstances (EC): This is the state-level equivalent of the federal ETA OIC. You must demonstrate that collecting the full tax liability would create an exceptional hardship or be deemed unfair due to unique circumstances.

What Happens After You Submit an OIC?

Submitting an Offer in Compromise is a significant step toward resolving your tax liability. But what happens next? The process, potential outcomes, and available options can differ between federal and state OICs:

Federal OIC Submission

If the IRS accepts your offer in compromise, you’ll receive a written agreement outlining the settlement terms, including the payment amount and deadlines. Your tax lawyer can help you fulfill your obligations and ensure that you remain compliant. While we always strive for acceptance, the IRS might initially reject your OIC. In such cases, we’ll explore all available options, including an appeal, a revised offer, or alternative tax relief solutions that align with your circumstances.

State (Maryland) OIC Submission

Once you submit your written request for an Offer in Compromise to the Comptroller of Maryland, they will review your application and financial information. If your offer is accepted, you will receive a written agreement detailing the terms of the settlement, payment amounts, and deadlines. If the Comptroller’s office denies your request, we can help you appeal the decision or explore other state tax relief options, such as installment agreements or requesting a hardship status.

How Our Tax Attorney Can Help

At Tax Relief Counsel, we take a personalized and strategic approach to assist you in making an offer in compromise. Here’s what you can expect when you work with us:

1. No-Cost Consultation

We’ll start with a full confidential review of your tax situation, carefully evaluating your circumstances and exploring whether an OIC is the best option for you.

2. Strategic Case Evaluation

We’ll work with you to gather the necessary financial documentation, including proof of income, lists of expenses, and information on assets. This will allow us to develop a comprehensive strategy that’s tailored to your unique situation and increases your likelihood of success.

3. Careful Document Preparation

Our team will meticulously prepare all required forms and documentation, including Form 656 for federal relief and the appropriate written request for Maryland state relief, ensuring your case meets the stringent standards.

4. Skilled Negotiation and Advocacy

Our tax attorney will act as your unwavering advocate, representing you throughout the entire process. We’ll handle all communication and negotiations with the IRS and Maryland Comptroller’s office, pursuing the best possible settlement terms and protecting your rights.

5. Achieving a Favorable Outcome

We’ll be there to guide you at every critical juncture, whether your offer is accepted, rejected, or requires modification. If the IRS or Comptroller doesn’t approve your OIC, we’ll explore other options, including an appeal or alternative tax relief solutions like installment agreements or currently not collectible (CNC) status.

Hiring an OIC Lawyer vs. Going It Alone

While you can technically submit an offer in compromise yourself, having experienced legal representation significantly improves your chances of a successful outcome. Here’s why.

Higher Acceptance Rates
We’re familiar with both federal and state-level criteria for OICs and know how to present your case effectively to increase your likelihood of acceptance.
Reduced Stress and Time Commitment
Our competent team handles all of the paperwork, documentation, and negotiations, saving you time and taking the burden off your shoulders.
Protection of Your Rights
We’ll promote your rights and interests and make sure the IRS or the Comptroller of Maryland treats you fairly throughout the process, ensuring that your offer receives due consideration.

The Difference
Our Services Can Make

Tax Relief Counsel is your trusted partner for minimizing your tax liability in Maryland. All of our services are designed to uphold your rights as a taxpayer and empower you to achieve financial freedom.

Proven Success in Securing OIC Acceptance

We've helped countless Maryland residents submit offers in compromise, thereby alleviating their tax burdens and giving them some much-needed financial breathing room.

Strategies Tailored to Your Needs

Every tax situation is unique. We’ll work closely with you to develop a customized plan that gives your request the best chance of success.

Dedication to Your Peace of Mind

Our legal professionals will take care of all necessary communication and negotiations, reducing your stress while keeping you informed and involved in decision-making.

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Frequently Asked Questions

What happens if I can't afford the initial payment for my OIC?

Federal: While the IRS typically requires a down payment with your OIC application, there may be options for alternative payment arrangements. Our team can help you explore negotiating a reduced initial payment or a structured payment plan tailored to your capabilities. The IRS may allow you to pay the offer amount in installments if you can demonstrate financial hardship.
Maryland: Maryland also generally requires an initial payment with your OIC application. However, alternative arrangements might be available. You can request a reduced initial payment or propose an installment agreement as part of your OIC. It is advisable to consult with a tax attorney to understand the best approach and how to present your case to the Comptroller of Maryland effectively.

What if I'm already on an IRS payment plan or a Maryland state tax payment plan?

Federal: You can still apply for an OIC even if you’re currently on an IRS payment plan. If your existing plan is causing undue hardship, an OIC might provide a better solution. Our tax attorney can help you assess whether switching to an OIC is a strategic move and guide you through the process of applying while on an existing payment plan.
Maryland: If you are on a Maryland state tax payment plan, you may still be eligible to apply for an OIC. If the current payment plan is unsustainable or causing financial strain, transitioning to an OIC might be a viable option. The process involves submitting a detailed request to the Comptroller’s office and explaining why the OIC would be a more appropriate solution given your financial situation.

Will my offer in compromise be confidential?

Yes, both federal and state OICs, along with any related financial information, are generally treated confidentially by the IRS and the Maryland Comptroller’s Office. Attorney-client privilege also protects your communications with our firm, ensuring that your discussions and submitted documents remain private.

How long will it take to resolve my OIC?

Federal: The IRS processing time for an OIC can vary based on the complexity of your case and the current volume of applications. Typically, it can take anywhere from six months to a year or more. During your consultation, we’ll provide a realistic timeline estimate and keep you updated on your case’s progress.
Maryland: The processing time for a Maryland OIC can also vary. While specific timelines are less commonly published, it typically takes several months for the Comptroller’s office to review and decide on your application. We’ll offer general guidance based on our experience and keep you informed throughout the process.

What happens if my OIC is rejected?

Federal: If the IRS rejects your OIC, you have the right to appeal the decision. Our tax attorney can assist you in filing an appeal and presenting a stronger case. Additionally, we can explore other tax relief options, such as installment agreements or currently not collectible (CNC) status.
Maryland: If your OIC is rejected by the Comptroller of Maryland, you can request a reconsideration or appeal the decision. We will guide you through the appeal process and explore other state-level tax relief options that may be available, such as installment agreements or hardship status.

Stop Struggling with Tax Debt —
Get a Fresh Start Today

Our OIC lawyer in Maryland is prepared to help you achieve financial freedom. Contact us today to arrange a free, confidential consultation. We’ll use every means at our disposal to secure a successful offer in compromise for you, shrinking your tax burden and putting you on the path to a brighter financial future.