Austin Tax Blog


We all know that an Offer in Compromise is a new lease to a tax payer’s life. It cannot be taken for granted and each step taken for Offer in Compromise application should be well organized, pre calculated and met with precision. To avoid any mishandling of the OIC on your end, you should hire an IRS OIC attorney who knows all the tricks of the trade and gets you the best benefits of the Offer in Compromise.

You should check the Offer in Compromise guidelines to avoid any pitfalls. In addition, rely on the best tax services provider in Austin to check your OIC qualification, draft OIC application and to get IRS OIC approved. Having said that, one still needs to be careful and refrain making common mistakes that may ruin the OIC. Find here, a list of such mistakes and why you should avoid them.

Mistakes that May Ruin Your Offer in Compromise:

Do not hide financial information!

When the IRS considers any OIC application, it executes several checks including those on the financial statements, assets, property etc. At this point, if they find anything hidden from them or not mentioned on Form 433-A then the next thing you get is an Offer in Compromise rejection letter. In addition, it can impose penalty on grounds of perjury and get you prosecuted in the court of law. You would fall under criminal records in the worst case and so, do not even try to hide anything from the IRS.

Do not indulge into heavy spending!

Well, this is pure common sense that when one cannot pay federal taxes, they cannot pay for expensive gadgets and luxury items. As the IRS will review your bank statements once you make an OIC application, you should be careful about your spending habits. You cannot afford to eat out often or display wild shopping habits when your OIC is under consideration. It will suggest that you have some hidden income leading to straight rejection of IRS OIC. So, control your spending habits for a time period suggested by your tax attorney in Austin.

Do not skip the paying the amount, come what may!

Once the IRS approves OIC, you cannot miss payment as this will lead to retraction of the OIC and you cannot afford that for sure. Pay the amount without forgetting the due dates of installments. Any kind of negligence would not be accepted at this stage and IRS would instantly revoke the offer. Therefore, be regular with tax payments in order to stop IRS from revoking the Offer in Compromise.

Not being regular with filing tax returns!

The IRS keeps tracking your behavior towards filing taxes even if it has approved your OIC application. You need to be regular with filing taxes for at least five years that fall immediately after the acceptance of the OIC. Ask your tax preparer to at least file tax returns on time even if you cannot pay immediately. Again, you should be paying the taxes at the earliest to not fall into the trap of delinquent taxes. Pay tax installments on a regular basis to avoid retraction of the OIC.

Apart from these points, you need to be careful with the OIC application and fill it up without any mistakes. The best way is to ask the tax experts in Austin to fill it so that there are fair chances of approval. Moreover, if you don’t fit into the eligibility criteria of IRS OIC then don’t waste time. Instead, ask your tax preparer to suggest a feasible alternative.

Escobar & Associates is a reputed tax services provider in Austin Texas. We are experts at handling IRS OIC application, queries and can suggest you expert tips to get OIC application approved. We offer all kinds of tax services in Austin and you can rely on our expertise to sort out taxation issues. To consult your case, reach out to us at or call our team on 512-442-3055.