The Key to a Successful IRS Offer in Compromise
A tax offer in compromise is merely an agreement between the IRS and a taxpayer whereby the taxpayer’s tax debt is settled for an amount that is less than the full balance that is owed. Generally, the IRS will not accept an offer in compromise if it feels that the tax liability can be paid off in full either in a lump sum payment or through an installment agreement. But completing and filing all the required offer in compromise forms can be a daunting task. You may need to seek the help of a qualified professional, including CPAs and tax attorneys. Completing the forms correctly the first time is of great importance. Taxpayers are required to file Form 656 or Form 656-L when they feel that the tax liability is inaccurate. In most instances, taxpayers must submit Form 433-A or Form 433-B to provide collection Information. Neither of these forms are required when a taxpayer submits an offer solely based on doubt as to the existence of the tax liability. One issue that many taxpayers fail to pay close attention to is making sure that all the required information gets properly submitted on a timely basis. If you don’t send the IRS the proper information or if your information is incomplete it will substantially delay the process. It may then take months to get information as to whether the offer in compromise was accepted. Taxpayers must submit $150 with the offer in compromise forms. Some taxpayers may be exempt from the fee depending on their income or whether or not the offer is based strictly on doubt as to tax liability. Taxpayers who claim the poverty guideline exception are required to certify that they are eligible by filing Form 656-A, Income Certification for Offer in Compromise Application Fee. If you want any hope of success you must make sure that you stay current with all your tax filings and payment requirements, including estimated taxes and federal tax deposits. Becoming delinquent or filing late could put an end to any chance of success you may have had. An offer in compromise is not for all taxpayers. Most will not qualify because they have financial resources or the ability to make installment payments. If you believe that you qualify make sure you are diligent in your efforts and provide the necessary paperwork. Then be prepared to wait. About the author: If you are looking for FREE information regarding how to get your offer in compromise approved, please click here === Tax Offer in Compromise. If you need more resources or are looking for valuable information on completing an offer in compromise please visit our site here === Offer in Compromise Settlement. |