OFFER IN COMPROMISE
What is an Offer In Compromise
If accepted, an Offer in Compromise will allow you to settle your tax debt for less than the full amount you owe and can be a good option for those who can't pay their full tax liability in full, or by paying in full you will incur financial hardship.
Qualifying for an Offer In Compromise
There are a number of items that the IRS will require before considering an Offer in Compromise. First, the IRS will require that you be in tax compliance - meaning that all of your required tax returns are filed and you must be current on your estimated payments and/or have the proper withholdings.
Next, the IRS will evaluate your ability to pay your tax liability by evaluating:
Your income and expenses, and
The equity you have in any of your assets.
When you hire us, we will prepare your offer on your behalf and will structure the offer so as to get you the lowest settlement allowed by law.
The Lump Sum Cash Offer in Compromise
If your Offer in Compromise is accepted under the lump sum cash option, you will be required to pay 20% of your offer amount with the application and then pay the remaining balance of the accepted offer amount over 5 months.
The Period Payment Offer in Compromise
Under this payment option, the IRS will require you to submit an initial payment with the offer and then continue to make monthly installment payments while the IRS is considering the offer. If accepted, the IRS will apply what has been paid up to that point and will require that you continue to pay monthly payments until the full offer amount has been paid in full.
What Happens While the Offer is Being Evaluated
While evaluating your Offer in Compromise, the IRS will suspend all collection activities. However, the IRS may still file a Notice of Federal Tax Lien. In addition, the CSED or Collections Statituory Expiration Date is tolled (extended) while the offer is being considered.
Presenting an Offer in Compromise to the IRS can be a lengthy and technical exercise. First, you have to determine if you are eligible and then the offer has to be crafted. We are experts at evaluating a case to see if it is eligible for an Offer in Compromise and fully understand the process of submitting the offer to get you the lowest settlement of your tax debt allowed by law.
To schedule a Free, no-obligation, consultation call us at 833-StopIRS.