Hello everyone. This is Marta Torres, checking in from Liberty Taxes & Business Services. Now that we’re steadily approaching the deadline for the upcoming tax season, it may be causing stress for those of us who have going through rough times. Maybe you haven’t been able cover all of your tax debt. What happens in a situation like this? Better yet, is there anything that can be done on behalf of the taxpayer to stay afloat?
As a matter of fact, there is a ray of hope in something called an offer in compromise. To determine if you meet the eligibility requirements and whether it is a good fiscal decision to follow through with, it makes sense to Find a Tax Preparer that can assist you through this process. In this article, we will take a look at what an offer in compromise is, what forms you must file, what the eligible requirements are, and other information. After reading, be sure to follow the links below to Find a Tax Preparer for an offer in compromise and start the process immediately.
So, what exactly is an offer in compromise? For those that owe a tax debt, an offer in compromise allows for you to settle your debt for less than the entire amount that is overdue. If you can’t pay your full tax liability, or doing so creates a financial hardship that may compromise your future, an offer in compromise may be a legitimate option.
There’s a number of factors that an Accountant hired on your behalf would consider beforehand to steer you towards this path. These include:
Before you consider an offer in compromise as a viable option, understand that there are a number of requirements that determine whether you can be eligible before an offer in compromise can be considered by the IRS. You must:
In addition to these requirements, if you are currently in an open bankruptcy proceeding, you will be ineligible for to make an offer in compromise.
To find instructions and all of the necessary forms for your offer in compromise, the IRS provides Form 656-B, Offer in Compromise Booklet. A completed offer packed will be comprised of:
There are two different types of payment options for an offer in compromise. They will vary depending on your offer and based on the payment option of your choosing:
In the interim period while your offer is evaluated by the IRS, you can expect some of the following to occur:
It is worthy to note that if the IRS does not make a determination within two years after you’ve submitted your offer in compromise, the offer in compromise is automatically accepted.
In the event that your application is rejected, you are given the right to an appeal within 30 days afterwards by using Form13711, Request for Appeal of Offer in Compromise.
If your application is accepted:
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