What is an IRS “Offer in Compromise” Agreement?
With the IRS “Offer in Compromise” Plan if you have an IRS tax debt that you need to settle you may be able to settle it for LESS than the full amount!
WOW – How is that so you ask.
If you have an outstanding IRS tax debt you might consider an IRS tool called the “Offer in Compromise”.
The IRS naturally wants to / has to collect something from you Mr., Mrs taxpayer.
If the IRS questions that they think you would not be able to pay your tax bill in full then they go to plan B…
that is to get what ever they can out of you determined by how much you owe.
Your true ability to pay and how much time they have to collect on the tax bill.
The OIC “Fresh Start Program” has been expanded and streamlined by the IRS.
The taxpayer has now been allowed more flexibility when the IRS analyzers the taxpayers ability to pay.
This makes the “Offers in Compromise”, Fresh Start program available to a larger group of taxpayers.
If the taxpayer can convince the IRS that the amount they are able to pay represents the most they would be able to pay within a reasonable period of time then generally, the IRS would accept the offer.
If the IRS believes the taxpayer can pay the full amount owed either through a payment agreement or as a lump sum then the IRS will not accept an offer in compromise.
Several factors are considered in the decision making when the IRS reviews the taxpayers ability to pay including the taxpayers income and their assets.
If you would like to see if you qualify for an “Offer in Compromise” settlement go to the IRS.gov website and use their Pre-Qualifier tool to determine your eligibility.
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