How to Get an Offer in Compromise Approved: Your Ultimate Guide
Posted by MichealH Alexander on December 28th, 2019
If you owe a lot in taxes, you can get your tax debt reduced with an offer in compromise. Here’s how to get an offer in compromise approved.
Do you want to know how to get an offer in compromise approved?
Have you been receiving threatening letters from the IRS that say that they’re going to levy your bank accounts unless you pay them? Maybe you don’t have the resources to pay them and have no way to borrow money. IRS tax resolution
It’s a scary situation to be in. Fortunately, the IRS has what’s called an offer in compromise program, which may allow taxpayers to have a fresh start from the burden of back tax debt. The important thing to note is that about 40% of those offers are accepted by the IRS.
Read on to learn more about what the offer in compromise is and how you can get your offer approved.
What is an Offer in Compromise
An offer in compromise (OIC) is an agreement you make with the IRS when you demonstrate that you can’t full pay a tax bill. You come to an agreement with the IRS to pay less than the amount that you owe.
The offer in compromise program first became part of the tax code under the 1986 Tax Reform bill. At the time, the IRS would look at your earning potential and disposable income for the next four years to determine your ability to pay.
In 2012, a major change in the rules only required the IRS to look at the next 12 months of earnings and disposable income to accept or reject your offer.
An offer in compromise can take anywhere between six months to two years to get approved.
Know If You Qualify
The first thing that you need to do is to know if you qualify for an OIC. You can do that yourself on the IRS website.
You’ll be asked about your current financial situation and whether or not you’re up to date on your tax filings and estimated tax payments.
You’ll then know if you qualify to apply for an offer in compromise.
Hire A Knowledgeable Tax Expert
You could feel a lot of shame for getting into tax trouble. That shame can prevent you from seeking the help that you need.
A tax expert is someone with an in-depth knowledge of how the IRS works and who manages OICs. They can help guide you through the process.
They know how your forms need to be submitted. They have done the process before with many other clients, so they know how to get an offer in compromise approved.Tax Debt Relief Service Brighton MI
Fill Out the Proper Forms
The IRS will accept your offer based on three qualifications: Doubt as to Collectability, Doubt of Liability, and Effective Tax Administration.
Your next step is to fill out about 20 pages of forms. You need to show that either you’re not liable for the taxes owed, your assets and income will not pay the taxes owed within the statute, or that there is an extenuating circumstance that qualifies you for an offer in compromise.
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About the AuthorMichealH Alexander
Joined: September 11th, 2019
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