IRS debt can be a stressful problem to handle for anyone especially if you are struggling financially. The IRS might have a reputation for being ruthless, but the government agency is not blind to the difficult circumstances taxpayers sometimes face. For this reason, the IRS is open to providing IRS debt relief for those that genuinely need aid to avoid extreme hardships. One of the available IRS debt relief options is an Offer In Compromise. An OIC involves debt forgiveness, allowing taxpayers to settle their debt by paying a lesser amount than what is owed. To learn more about the IRS Offer in Compromise debt relief option, keep reading!
How Does An Offer In Compromise Work?
An Offer In Compromise is a form of IRS debt relief, in which the taxpayer offers to pay a lesser amount of debt to avoid financial hardship. In order to get your offer accepted, the proposed payment should represent the maximum amount you would be genuinely able to contribute towards your IRS debt without experiencing extreme strain on your finances. After following the entire process and submitting your Offer In Compromise proposal to the IRS, your case will be examined in detail by the agency. Some of the things the agency will pay close attention to include your income, ability to pay, expenses, and other assets.
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Are You Eligible For OIC IRS Debt Relief?
There are some basic requirements you must meet to be considered eligible for this type of IRS debt relief. First and foremost, it is important to keep in mind that it is mandatory to have filed all your tax returns. You are also required to have made the required estimated payments on your tax return. Being in the middle of bankruptcy proceedings is also a disqualifier. For more information about your eligibility for an Offer In Compromise, make sure to contact a qualified IRS debt attorney.
How Do You Submit An Offer In Compromise?
To submit an Offer In Compromise, you’ll need to meet the following requirements:
- Complete Form 433-A for individuals or 433-B for businesses and provide all required documentation as specified in the forms
- Complete Form 656(s)
- Pay the $205 application fee, which is non-refundable
- Make the initial payment
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You will also need to select a payment plan of your choice from the two available options. The first one involves paying 20% of the proposed amount upfront and then the balance in 5 payments or less after the offer is accepted. Alternatively, you can choose to begin paying your OIC in monthly installments after the initial payment, as deliberations around the issue proceed. Once accepted, you simply continue to make payments until you extinguish the debt.
If you are looking for the best IRS debt relief option to escape your tax debt problems, IRS tax attorneys at the Law Offices of Nick Nemeth can help! We take a close look at your circumstances to help you determine eligibility, complete the Offer in Compromise submission process, and chart on the best payment plan. For more information on IRS debt relief services, contact us here or call (972) 627-4580 for a free consultation.