IRS Offer in Compromise: Expert Assistance
Do you have outstanding tax debt? Get a Second Chance with an Offer in Compromise!
Understanding IRS Offer in Compromise
Are you struggling to pay your taxes? You’re not alone. Several Americans still owe the IRS. And while there can be many viable options, Offer in Compromise might still top the list. But what exactly is an IRS Offer in Compromise?
It is an agreement between you and the IRS to settle the debt for an amount less than the original one. Navigating the tax maze is usually very puzzling to taxpayers. Why? Because it has tax codes many don’t fully understand.
Here’s the catch though – securing an Offer in Compromise can be puzzling. It requires careful analysis of your financial situation and a well-prepared application. Miss a step and you could be back at square one.
That’s where our team comes in. We understand the technicalities and guide you towards making a better decision. From understanding whether you’re eligible to prepare your OIC application – the or IRS representation services will ensure you get the best deal!
Why not take the first step towards financial freedom? Let our team do the hard work for you! Contact TODAY!!
Are you Aware of the Eligibility for Offer in Compromise?
Navigating the IRS Offer in Compromise (OIC) program can be difficult, but a game-changer! This unique tax relief option could allow you to settle your tax liabilities for less than the full amount owed. Sounds incredibly relieving, doesn’t it?
Question is, can you avail it?
While many can, the fact is that you need to be eligible to get an Offer in Compromise IRS. At times, it is vital to remember that it’s not just about the numbers on your tax bill, but your overall financial situation.
Are you wondering if you’re the right fit for an Offer in Compromise?
- You’ve filed all required tax returns.
- You’ve made all estimated tax payments for the current year.
- You’re not entrapped in any ongoing bankruptcy proceeding.
- In case it’s the current year you’re applying for, you hold a valid extension for the return.
- You’ve made your tax deposits for the current and previous two quarters, as an employer, before the application.
Seems a little more manageable now?
There’s also a tool that helps to check your preliminary eligibility: the Offer in Compromise Pre-Qualifier. This interactive tool can guide you and confirm whether you’re a potential candidate. This can even aid in developing a preliminary proposal. It’s best to consult with tax consulting services to have a better understanding!
But what happens if you’re not eligible?
Don’t worry; If you are not eligible, th IRS will:
- Send your application and its application fee back.
- Utilize the payment you included to minimize your outstanding tax balance.
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Let’s Talk about the Benefits of Offer in Compromise
An IRS Offer in Compromise (OIC) is a lifesaver. But what makes an OIC truly beneficial?
Reduced tax liability: The IRS might settle your tax debt for a sum that is less than the original amount, which gives you freedom from the additional tax strain!
Avoidance of Wage Garnishment, Bank Levies, and Other Collection Activities: Once an OIC is accepted, the IRS will pause all collection activities, which includes wage garnishment, bank levies, and property seizures!
Improved Credit Rating: After your debt is settled, your credit rating enhances. This makes the process of approved loans, credit cards, and other forms of credit far easier to get.
Added Relief: Something people always skip on is that a settled debt often gives you the relief and peace of mind you were looking for.
Thinking about the Offer in Compromise Process?
It’s true that the OIC process is often very complex and time-consuming! And once the taxpayer has met all eligibility requirements, it’s vital for them to submit an OIC application which must include:
- Completed Form 656
- Financial statement
- A letter explaining the reason behind being unable to pay
But, what are the steps for an OIC process?
- Gather all important information (income, expenses, assets and more).
- Complete both Form 433-A and Form 433-B (OIC).
- Attach all necessary documentation for supporting your information. It includes anything between pay stubs, tax returns, bank statements and more.
- Submit your offer alongside an application fee of $250.
- This is where the IRS will review your offer and determine whether it’s acceptable.
Sometime later, the Internal Revenue Service (IRS) will inform you of their decision. The notification will be sent in writing. Following their decision, they’ll highlight an amount you would have to pay in full. Often, walking through this maze can be difficult, meaning that you should consider the guidance from an offer in compromise attorney!
Ready for Working with an Offer in Compromise Attorney or Lawyer?
Experiencing a tax debt is an uphill battle. But, don’t worry, you won’t have to battle it alone! It’s important to pair with an offer in compromise lawyer to know the intricacies and avoid the bad days!
Why should you consider teaming up with us?
- Expert Negotiation
- Streamlined Process
- Client-first Approach
- Accurate Assessment
- Right to Confidentiality
- Full-fledged Guidance
- Protection of Rights
Partnering with our Offer in Compromise attorney can make a huge difference in your debt resolution journey. It’s not just about getting somebody experienced, but about taking a proactive step towards a brighter financial future. And that’s exactly why you should consider taking guidance from tax advisory services!
Offer in Compromise Vs. Other IRS Payment Options!
Navigating and understanding all IRS payment options can be confusing! From installment agreements to currently not collectible, the hard words just keep going, right?
But they do have meaning. And they are important for you to understand. Just like an IRS Offer in Compromise, there are other payment options you NEED to have knowledge about! While Offer in Compromise is where you settle for a lesser amount, the others have different meanings!
Installment Agreement
This is a type of payment option where you divide the lump sum into smaller portions, and pay them every month until the debt is settled. It’s a steady journey, but keep in mind, interest and penalties still accrue over the course of the agreement.
Currently not Collectible (CNC)
CNC temporarily stops all collection activities if you prove severe financial hardship. While it does provide immediate relief, it’s not for a long time. This is majorly because the interests and penalties keep accruing.
All these options have their own pros and cons, and the right choice depends upon your financial backdrop! Uncertain which route to take? Don’t worry! Our professionals will help navigate the complexities for you. Ready to call? Schedule a consultation NOW!!
Tips for a Successful Offer in Compromise
You can always reduce a tax mountain to a manageable hill through an Offer in Compromise! But, how do you get an Offer in Compromise successfully?
- Always provide the IRS with complete and accurate information
- Never accumulate more tax debt
- Choose to appeal an unfavorable decision
- Don’t withdraw the Offer in Compromise application
- Stay compliant
- Always get professional help
For a successful Offer in Compromise, keep in mind that you need to be authentic, and realistic.
Remember the Common Mistakes to Avoid!
Sometimes, navigating the offers in compromise IRS can be puzzling. But with the right knowledge, you can avoid some very common mistakes taxpayers usually male when dealing with an IRS OIC.
- Never submit incomplete information
- Failure to Disclose Finances
- Never overspend
- Never make mathematical errors, always recheck when filling Form 433
- Don’t leave blank spaces
- Non-compliance is never encouraged
- Never ignore the Statute of Limitations
Offers in Compromise IRS can be a golden ticket to settling your tax debt for less than the full amount. But, it’s vital to approach the process accurately to boost your chances of acceptance.
Schedule a consultation NOW!!
Guide to IRS Offer in Compromise Forms
Has the idea of IRS Offer in Compromise forms confused you? You’re not alone. The process can often be daunting, but be sure that they are simple if you get the right guidance.
The key to an Offer in Compromise with IRS lies in the proper completion and submission of the correct forms. They are the tickets to a potential tax settlement for less than the amount you owe. These are the vital forms you need to know:
- Form 656 – Offer in Compromise: This is a form where you put in a request to the IRS, stating your offer amount and terms of payment.
- Form 433-A (OIC) or 433-B (OIC): These are financial statements for wage earners and self-employed individuals, or for businesses, respectively.
Remember, you’re not alone in this process. Proffitt & Associates’ tax professionals are here to guide you every step of the way. Contact NOW and let’s discuss your tax settlement resolution TODAY!!
Behind the Scenes: Role of the IRS in an Offer in Compromise
The IRS is the keyholder when it comes to an Offer in Compromise (OIC). They are the decision-makers, and your potential ticket to a fresh financial start. But, what do they generally work on? What’s their responsibilities?
Evaluation & Acceptance
The IRS doesn’t accept every OIC that is put on the table. They take their time to assess your financial information, including income, expenses, asset equity, and ability to pay. If they come to the decision that fhe offered amount is the most they can expect to collect within a reasonable period of time, there is hope that they’ll accept your OIC.
Monitoring Compliance
Once the Offers in Compromise with IRS is accepted, the IRS doesn’t just walk away. They keep an eye on you to ensure you’re compliant with the tax code for five years following acceptance. In case you meet all the terms of your offer, including staying current with all filing and payment requirements, the remaining debt is going to be wiped clean.
Fair Judgement
The IRS’s role in an OIC isn’t just about collecting what’s due. The IRS makes sure every taxpayer is treated equally and with fair consideration as per their circumstances. They understand that life can definitely throw people curveballs, which is why the OIC process is designed to give taxpayers a second chance. But facing complex tax issues could be daunting; that’s where a ‘tax attorney offer in compromise’ could provide the necessary expertise to help you navigate the complex process.
The IRS may seem intimidating, especially when you’re dealing with tax debt. But it’s essential to remember that they also play a crucial role in solutions like the Offer in Compromise.
Let our team help you navigate the OIC process, standing by your side every step of the way. Let’s take hold of your tax debt together – one step at a time.
Frequently Asked Questions
For being eligible for a IRS Offer in Compromise (OIC), you must have filed all required tax returns, cleared all estimated payments for the current year, and not be in an open bankruptcy proceeding. In case you are an employer, you must make all tax deposits for the current and past two quarters before applying.
The amount to offer in your OIC proposal depends on your financial situation. You must offer a minimum amount that the IRS considers equal to your reasonable collection potential (RCP). This is the total of your realizable value in assets, plus future income, less certain amounts allowed for basic living expenses.
Yes, you can submit an OIC without professional help. However, the process can be complex and may require a deep understanding of IRS policies and procedures. Therefore, it’s often recommended to seek help from a tax professional.
After you submit your OIC, the IRS begins its review. This includes verifying your financial information, assessing your ability to pay, and determining whether the offered amount is in the best interest of both parties.
The IRS review process for an OIC can take anywhere from six months to two years, depending on the complexity of your case and the IRS’s workload.
Yes, the IRS can reject an OIC if it determines that the amount offered is less than the reasonable collection potential, or if it believes the taxpayer can fully pay the liability through installments or other means.
If your OIC is rejected, you are notified by mail with a detailed explanation of the decision. You remain responsible for the full tax debt, plus any accrued interest and penalties.
Yes, if your OIC is rejected, you have the right to appeal the decision within 30 days from the date of the rejection notice.
The IRS doesn’t directly report your taxes or your OIC to credit bureaus. But, once the OIC is done, and the reduced tax amount is paid, any tax liens filed by the IRS may be released, which could indirectly improve your credit score.
While your OIC is under review, the IRS typically suspends collection activities. However, you can voluntarily make payments toward your tax debt. These payments are going to affect the IRS’s decision on your OIC. If your OIC is rejected, these payments can lessen the amount you owe under an installment agreement.
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