offer in compromise debt relief can help resolve your tax debt problems.
Your financial situation is different from someone else. The tax debt relief service that works for someone may not be the best choice for someone else. You should take the time to understand all the debt relief options available to you to find the best solution for your needs and goals.
What Is Offer In Compromise?
If you owe the IRS money and have tried everything to pay it off, you can consider making the IRS an “offer in compromise” (OIC) to settle your tax bill. An OIC allows taxpayers to settle their tax debt by paying the IRS less than what they owe in back taxes. An IRS OIC is a tax debt settlement plan.
Who Is Eligible?
The IRS is generally reluctant to agree to offers in compromise. The IRS will do so when the Offer In Compromise represents the IRS’ best opportunity at getting the largest amount of debt possible from a taxpayer, within a reasonable amount of time. Since the IRS always seeks to collect as much of your tax debt as possible, only a small number of OICs are accepted each year.
The IRS Offer in Compromise review process is a detailed one. You are required to provide the IRS detailed information regarding your finances. Therefore, it is best to ensure you are a good candidate for the program before you apply. An unsuccessful OIC will only prolong the collections process (added interest and penalties) on your tax debt. Also, it provides the IRS additional financial information to enforce collections against you.
Eligibility | What Happens
What Else Should I Know?
If the IRS rejects your Offer In Compromise, you have the right of appeal. The IRS will send you a rejection letter explaining the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision. The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer rather than rejected. This is because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer. Once current, the OCI may be submitted again for IRS review.
Thoughts On Offer In Compromise
An IRS Offer in Compromise (OIC) is a tax debt settlement plan. It allows taxpayers to agree with the IRS to settle a tax debt for less than what they owe. Only a fraction of OICs are accepted each year.
Getting IRS approval for an Offer In Compromise is a challenging task. It is strongly recommended that you have professional advice and representation when dealing with the IRS.