Do you have a letter from the Internal Revenue Service asking for money? Do you fear running out of money if you continue making your payments on time? The next step is to submit an Offer in Compromise application to the Internal Revenue Service.
Through the IRS’s Offer in Compromise Program, tax debts may be settled for less than the full amount owed without the case being sent to the Department of Justice for prosecution.
Do you want to know whether an Offer in Compromise from the IRS is something you may apply for tax relief professional? Then keep reading!
Complete any Tax Reports
For an Offer in Compromise to be accepted, you must have completed all necessary tax forms and honestly think you cannot pay your entire tax due. You and the IRS have reached an understanding via the OIC. It facilitates the process of settling tax debt. If you want to settle it for less than what you owe in total, you may.
You must have submitted all mandatory tax returns, including your federal income tax return and state income tax return, for all years in which you owe taxes. No Offer in Compromise may be accepted if you haven’t submitted all your tax filings.
Remit All Tax Payments Due This Year
To qualify, you must demonstrate that you have paid your current year’s tax obligations and that you do not have sufficient funds to pay your full tax bill. You’ll also need to provide evidence that you uploaded all necessary financial papers and filled out all required fields on the Compromise form in preparation for making the Offer. The IRS will examine your submission and decide whether an Offer in Compromise is appropriate after the submission of the required documentation.
Keep All Tax Returns and Payments Current
As part of this plan, you may be able to settle your debts for less than the full amount you owe. You may only apply if you’re current on your tax payments and filings.
You’ll also have to show that even making payments on the lower amount will cause you undue financial hardship. Even if you can’t afford to settle your whole tax bill in full, you should see whether you qualify for the Offer in Compromise program.
Please Show That You Do Not Have the Means to Pay Your Entire Debt
You have to show that you just do not have the money to pay off your debt in full. This might be the result of monetary constraints or any other unavoidable scenario. You’ll need to provide proof of income, spending, and assets to make your case.
The Internal Revenue Service will next evaluate your situation to see whether an offer in compromise is possible. You should qualify for debt forgiveness if you’re having trouble making payments.