IRS Offer in Comprimise are highly advertised programs that will allow a taxpayer to settle their debt for a small percentage of what is actually owed. Before you choose to file IRS Offer in Comprimise, know the pitfalls and rules. This will not only help you save money, but save yourself from frustration.
IRS Offer in Comprimise: How to FileIRS Offer in Comprimise can be filed for any tax debt owed. The Official IRS website offer
free downloadable forms that must be filled out in full and submitted to the IRS with a $150 non-refundable filing fee. The
most common form of IRS Offer in Comprimise are the Doubt as to Collectability, forms 656. This means that the taxpayer does not
believe they will ever be able to repay the tax debt. To file, a taxpayer
simply completes the following:
- 433-A: Collection Information Statement
- Form 656: Offer in Comprimise
- Form 656- PPV: Offer in Comprimise Periodic Payment voucher
- Copies of all bank records, paycheck stubs, proof of housing, utilities, car payments and other debts.
This information is then mailed to the Offer in Comprimise division and awaits its turn in a queue of other IRS Offer in Comprimise files. The IRS has up to 2 years to review an offer submission and may request updated information (paycheck stubs, bank statements, housing and utility statements, etc) at any time. The IRS Offer in Comprimise agent will also utilize credit checks, DMV records, and the previous year's tax returns to determine what that taxpayer's potential collectability will be over the next 5-10 years.
IRS Offer in Comprimise: The Truth Behind the CommercialsIRS Offer in Comprimise commercials are everywhere, but they rarely explain the true nature of the IRS Offer in Comprimise program.The facts don't lie! In 2009 only 1 in 1,000 taxpayers who owed a balance to the IRS, and filed an Offer in Comprimise with the IRS had their offer accepted in 2009! The truth is that out of the 9.2 million taxpayers who owed the IRS money, only 11,000 had Offer in Comprimise accepted. That's a 1.1% chance that you may be successful!
IRS Offer in Comprimise programs are not designed to work for the taxpayer, but to work for the IRS. The taxpayer provides all their information to the IRS and requests a settlement. The IRS takes the same information and will come back with a counter offer that may exceed the actual tax debt! If the taxpayer does not accept the counter offer, the IRS then will push for a large and unaffordable monthly payment for the tax debt.
IRS Offer in Comprimise: The Scary FactorIRS Offer in Comprimise can do more than ask you to pay a ridiculous sum of money. When Offer in Comprimise are filed, taxpayers are allowing the IRS to extend their collections dates (also known as Collection Statute Expiration Dates) for up to two years. This means you are allowing the IRS to add up to an additional two years to the already 10-year statute dates!
IRS Offer in Comprimise also require the taxpayer to enter into a five-year compliance contract. This means you cannot owe any further debt to the IRS within five years of the date your offer is filed or accepted. If you owe a debt, your offer can be immediately rejected, and you will owe your total debt plus all the penalties and interest! If you file a tax return late, you will also violate your compliance contract!
Before you file the Offer in Comprimise forms, speak with a specialist that will help you determine if the Offer in Comprimise program is right for you! Get help from professionals who know how to make Offer in Comprimises work! Call or fill out the form below. Find out if you qualify for IRS Offer in Comprimise!