IRS Tax Debt Solutions: The Offer In Compromise

 

Some taxpayers get overwhelmed by the sum of the debt that they owe to the IRS. Since they know

that they can't afford what they owe, they ignore the problem altogether in a futile attempt to "make

the problem go away.”  Ignoring the debt you owe to the IRS will only lead to more problems. The IRS

will notice, and they'll assess high interest and penalties. The IRS has a variety of IRS tax services available to taxpayers so that they can resolve their tax debt.  You have a lot of options available to you, but for today we're going to focus on one of the most common resolution options people use when they're burdened with tax debt: the offer in compromise (OIC).

 

Offer In Compromise Basics

 

If you find yourself with tax debt that you don't think you can pay off in a reasonable amount of time, you can file an OIC with the IRS.   An OIC is exactly what it sounds like, since you can't pay the amount that you owe you make a compromise with the IRS and offer to pay alower amount. The IRS reviews your ability to pay, your current level of income, your expenses, and your asset equity, among other things.  You should consider hiring a tax resolution professional to help you through the process since they're familiar with the ins and outs of IRS tax rules.  They'll be able to analyze your situation and tell you which option will be least burdensome. They'll also be able to give you advice on how to avoid owing money or reduce the amount owed for next year.

 

Wall & Associates, Inc. is the best company to contact to assist for these services. They have many years of experience with these situations and will be able to appropriately advise you. Wall & Associates, Inc. will file all necessary paperwork for an OIC.  When you submit your paperwork

(please be advised that the IRS charges an application fee of $150 for submitting an offer in compromise) must send a down payment for each offer form you fill out. Your down payment will differ based on your offer and the payment option you choose. You can opt to give the IRS a lump sum cash payment where you submit an initial payment of 20% of the total offer amount

with your application. You'll pay the remaining balance of the offer in five payments or less. Or you

could choose to pay a periodic payment, where you gradually pay off the remaining balance of the offer each month until the debt is paid in full. If you want more information on OICs, visit the

Wall & Associates, Inc. website for a more in-depth explanation of the program.

 

*Not a solicitation for legal services*