If at all you are a taxpayer and you are faced with such financial hardships that make it harder for you to pay up your taxes as is due to the IRS, then chances are so high that you have already heard of the Offer-in-compromise plans or programs. By and large, the OIC program allows you as a taxpayer to pay your tax debt for less than what is actually due from you to the authorities. It is an option that is available to you if you cannot pay your tax debt in full or if doing so will result in some monetary adversity for you. Generally speaking, this program from the IRS is one program for settlement of taxes offered by the IRS that allows burdened taxpayers sort out their taxes and get back to compliance as should be with the authorities.
Going forward, it is important to note the fact that the IRS will approve an application for admission into the OIC program only where the amount offered is one that they can reasonably expect to collect with the given time period. Advice would be that before you make an application for an OIC, you explore all available settlement plans.
Fact is that in as much as it is an open program, it is not meant for all. Talk to your tax consultant for you to know if at all the OIC program will be the best way out for you to settling your tax debt or better still advise you on the best way forward. In case you are thinking of getting the opinion of the tax experts to help you with these matters, you should be very careful with the choice you make and see to it that they are indeed qualified tax professionals. The following are some of the basics that you should identify of as you contemplate an offer-in-compromise application.
First, you should see to it that you are entitled. Talking of qualification, you need to know of some of the things that the IRS looks at. There are some mistakes that you may make during your application that may see your application rejected. A good example is such as where you happen to submit your application for the offer in compromise program but you don’t furnish the IRS with your tax returns and as well fail to make any required estimates of payments. In any case you happen to be in an insolvency proceeding, then you should be aware that you will not qualify for the program.