I’d always heard that the Internal Revenue Service was incredibly aggressive. Then I read about the Offer in Compromise. That doesn’t sound like the IRS I’ve come to understand. What’s the deal? Is there really such a thing as the Offer in Compromise?
The Offer in Compromise started as an IRS program after tax-collection agents learned a hard lesson: The strong arm isn’t always the most effective one.
After years and years of beating on doors in an effort to chase down those who owe back taxes, the IRS realized that, in some situations, a gentler approach can be more effective.
Enter the Offer in Compromise.
If you think you might benefit from this program, the first thing you should do is consult a qualified tax professional. He or she will go through your previous returns line by line to determine the exact amount you owe the IRS. Once that figure is determine, you and the tax professional will meet with the IRS to discuss an Offer in Compromise. This offer is the amount of money you will pay to settle your tax debt once and for all.
Believe it or not, the Offer in Compromise can often reduce your tax debt by pennies on the dollar! It is, without doubt, one of the best ways to eliminate nagging tax headaches and start over fresh with the government, if you qualify.
Of course, not everyone qualifies for the program. It intended for taxpayers who, for whatever reason, no longer have the financial ability to pay their tax debt as it is. But for those who do qualify, it can be a life-changing program.
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