Offer In Compromise–What it Is
An Offer in Compromise is a contractual agreement betwixt the taxpayer and the Internal Revenue Service that wipes clean the taxpayer’s debt for less than less money than he/she owes. The Internal Revenue Service has the authority to “compromise” or settle tax debts ( within specific financial circumstances ). The most common case is when it’s not likely the taxpayer will have the power to repay the debt in full proposed indicates what the taxpayer can feasibly pay .
This is how you get your OIC accepted :
The chief requirements for an IRS Offer in Compromise are arithmatical in nature. To be in the running for an Tax Offer In Compromise, your tax debt must exceed the book value ( fair market value ) of one’s assets and accessable surplus income for a definite period of time . The accessable excess income is based on certain standard amounts instead of actual situations .
The majority of all OIC applications are rejected, contrary to what is indicated by the pennies-on-the-dollar mills advertisements . A Ceritfied Public Accountant could tell if you qualify for the minimum specifications for an Offer In Compromise (OIC) expeditiously, and at fair cost .
If you don’t qualify for an Offer In Compromise (OIC) , you will probably be able to prepare an installment plan with the Internal Revenue Service.
In our opinion , the OIC plan is one of the best tax resolution tools accessable to taxpayers. Current tax laws have provided new hope to taxpayers who were disqualified by the old Offer in Compromise laws .