Offer in Compromise Help: Settle Tax Debt with an Offer in Compromise

Offer in Compromise Help: How to Settle IRS Debt with an Offer in Compromise

Filing for an Offer in Compromise to Settle Tax Debt is a notoriously difficult process. There are numerous forms, paperwork, and documents to contend with in order to Settle Tax Debt. However, it's worth the effort to submit an Offer in Compromise (OIC) if you qualify, why pay for the debt in full if you can pay for a fraction of it instead simply when you Settle Tax Debt?

Quick Review, Who Qualifies for Offer in Compromise?
Here are few ways taxpayers can qualify for an Offer in Compromise:

• You cannot pay the full amount on your Tax Debt without facing a financial hardship
• You have a special hardship circumstance (Ex: Illness, Fixed Income)
• You are not liable for the Tax Debt

Offer in Compromise Forms:

• When submitting an Offer in Compromise you need the most current versions of the following:
• IRS Form 656, Offer in Compromise, or
• IRS Form 656-L, Offer in Compromise (Doubt as to Liability)

In most cases, you'll also need:

• IRS Form 433-A, Collection Information Statement for Wage Earners and Self Employed Individuals, and/or
• IRS Form 433-B, Collection Information Statement for Businesses

Application Fees
You are required to pay an Application Fee of $150 when you submit your Offer in Compromise. The Application Fee is non refundable, and the IRS will return your offer if the Application Fee is not included and they will not Settle Tax Debt.

Check-List for Success:
Make sure you've completed all of the following to ensure success when submitting your Offer to the IRS to Settle Tax Debt.

• Investigate all options: Explore all options for paying your debt or to Settle Tax Debt before submitting an Offer in Compromise.
• Complete All Items: Don't leave any lines blank on IRS Form 656, Offer in Compromise.
• Submit Documentation: Gather physical evidence proving why you cannot pay your Tax Debt in full.
• Include Fees and Payments: You must include all required Fees and Payments or your Offer will not be processed.
• Be Current: You must get current with all of your tax filings and remain current while your Offer is being approved.

Offer in Compromise Payment Options.
You can choose to pay your Offer in Compromise in one of three payment options:

• Lump-Sum Cash Offer: This requires a payment of 20% of the Offer along with the $150.00 application fee. The Offer must be paid in five payments or less.
• Short Term Periodic Payment Offer: The Offer amount must be paid within 24 months of the date the IRS receives the Offer. The first payment is due when you file Form 656, and regular payments are required while the IRS investigates your case.
• Deferred Periodic Payment Offer: The Offer must be paid over the remaining statutory period on the Tax Debt. The first payment is must be submitted with Form 656 and regular payments must be made with the IRS investigates the case.

The payment installments you make to the IRS are non refundable. You don't want to lose a significant amount of money getting your Offer approved if you don't qualify, so be sure to fill every blank on Form 656 and provide as much supporting documentation as possible. Consider Offer in Compromise Help if necessary.

Denied? Get Offer in Compromise Help
The majority of Offers submitted to the IRS are denied. If you know you took the proper steps when you submitted your Offer but it was still denied, consider working with a professional that can guide you in the right direction to Settle Tax Debt and provide expert Offer in Compromise Help. While Offer in Compromise Help is not necessary to settle IRS Debt, professional Offer in Compromise Help will make a huge difference and make the process to Settle IRS Debt a lot easier.