Ask the Tax Resolution Expert: The IRS Offer in Compromise or Installment Agreement Programs May Be Your Tax Debt Solution
At Tax Resolution Services we hear about unresolved tax debt everyday. There is no doubt that the IRS wants your tax dollars but, in some cases, they will work with you to resolve your tax debt.  A program that you may not have heard of, called Offer in Compromise, was established to help tax payers with significant financial problems get a fresh start. In some cases, the Offer in Compromise program gives the tax payer the opportunity to pay a lesser amount as the full and final payment. It is important to note that not everyone qualifies for the Offer in Compromise program. If the person does not qualify, there are other options, as revealed in this “Ask the Tax Resolution Expert” post.Â
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Question: After the first of the year, I want to resolve my financial problems, including my tax debt. I’ve read about and seen you discuss both the Offer in Compromise and the Installment Agreement. Which one is right for me?
Answer: First of all, what you’re planning to do is great. I can’t think of a better way to start the New Year than to find a way to resolve your financial problems and, most important, settle your tax debt.
Unfortunately, due to the limited information I have on your case, I can’t tell you whether to choose the Offer in Compromise or the Installment Agreement. Each one is set up for unique situations. Instead, I’ll give you some advice and tell you a little about each program.
Before you do anything else, you need to consult a qualified tax professional. He or she will analyze your previous returns, determine the exact amount you owe the IRS, and chart a course that will work best for you. It’s critical that you first meet with a qualified tax professional, as it’s possible your situation might not be quite as dire as you think it is.
Once you and your qualified tax professional have determined what you owe, it’s time to meet with the IRS.
You should first consider the Offer in Compromise. This program is designed for taxpayers who owe a substantial amount but for whatever reason cannot pay down their debt. If you qualify, you will be able to reduce your tax debt significantly by using the Offer in Compromise program. However, if you do not qualify for this program, I recommend you consider the Installment Agreement. This program allows you to pay down the tax debt over a period of time, in a manner similar to how you might pay down your car loan.
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Why don’t you come see me? The tax professionals at Tax Resolution Services deal with IRS problems such as yours every day because we are IRS problem solvers. We can help you find tax relief through programs like Offer in Compromise or the Installment Agreement plan.  For a free, no-risk tax consultation, please call Tax Resolution Services at 818-774-1813 or 1-866-IRS-PROBLEMS.Â
More Tax Help, IRS News and Tax Relief Tips:
- Offer in Compromise Program or an IRS Payment Plan? Get Your Tax Debt Questions Answered Here!
- Ask the Tax Resolution Expert - Do I Qualify for the IRS Offer in Compromise Plan or Participating in the IRS Installment Agreement Payment Plan?
- Ask the Tax Resolution Expert: The IRS Offer in Compromise Program is an Option to Resolving Tax Debt
- Ask the Tax Resolution Expert: What if My IRS Back Taxes Problem Cannot Be Resolved with the Offer in Compromise Option?
- Ask the Tax Resolution Expert: Taxpayer with IRS Debt Doesn’t Qualify For Offer in Compromise and Needs Tax Relief Options
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