If you owe the IRS money, you may be able to settle your debt for less than the full amount you owe. This is called an Offer in Compromise (OIC). An OIC can help you pay off your debt and move on with your life.
The IRS considers many factors when deciding whether to accept your offer. The most important factor is your ability to pay. The IRS will look at your income, expenses, and assets to determine if you can pay the full amount of taxes you owe. Introduction: what is Offer in Compromise?
How to qualify for an Offer in Compromise
An offer in compromise is an agreement between a taxpayer and the Internal Revenue Service (IRS) that resolves the taxpayer's tax liability for less than the full amount owed. The IRS considers many factors when evaluating an offer in compromise, including the taxpayer's ability to pay, income, expenses, asset equity, and the likelihood of collecting the full amount of taxes owed.
The Offer in Compromise program is not for everyone. Taxpayers who can fully pay their tax debt should do so.
The Offer in Compromise process
An Offer in Compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer's tax liabilities for less than the full amount owed.
The IRS accepts an OIC only if it believes that the amount offered is the most that can be reasonably expected to be paid based on the taxpayer's current financial situation. To qualify for an OIC, taxpayers must submit a completed application, including required documentation of their financial condition, and pay a non-refundable processing fee.
Advantages and disadvantages of an Offer in Compromise
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer's tax debt for less than what is owed. This program is available to taxpayers who can't pay their full tax liability, and it may be an option if the taxpayer believes that they can't pay their tax liability in full.
Conclusion
An offer in compromise is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer's tax liabilities for less than the full amount owed. The IRS will consider accepting an offer in compromise if it believes that doing so would be in the best interest of both the taxpayer and the government.
In order to qualify for an offer in compromise, a taxpayer must first submit a completed application which includes financial information about their assets and income. The IRS will then review this information to determine whether or not the taxpayer is eligible for an offer in compromise.
