IRS Question Corner …
Question: How do I determine if I qualify for the IRS’s Offer in Compromise program, and how best do I determine if the program would benefit me?
Answer: You should first understand what the Offer in Compromise program is and why it came into being. The gist is this: After spending years with a bare-knuckled approach to tax collection, the IRS began to question whether working with people with tax debt would be more effective than chasing people with tax debt. They discovered that many of the people they were chasing truly wanted to pay off their tax debt — they just didn’t have a way to do that.
Enter the Offer in Compromise program. It’s specifically designed for people who have amassed a large amount of tax debt but who, for whatever, are not in a position to pay off that debt. For those who qualify, the Offer in Compromise program can reduce tax debt by pennies on the dollar and finally eliminate those IRS nightmares.
Of course, there are some requirements and limitations. You can’t, for example, live the high life with lavish vacations and keys to a Maserati at the same time you’re asking to participate in the Offer in Compromise program. But for those who qualify, the program allows taxpayers to eliminate their debt without leaving them penniless and homeless.
To determine if you qualify, you should first consult a qualified tax professional. He or she will analyze your returns with a fine-toothed comb to ensure that you are not volunteering to pay the IRS even a penny more than you owe. Once your tax professional has determined exactly what you owe, you and he/she will meet with an IRS agent to discuss the terms of your Offer in Compromise.
It’s really that simple. And for those who qualify, it can be a financial-life-changing experience.
I solve IRS problems like yours every day. I’m an IRS Problem Solver. For a free, no-risk consultation, please call my office at 818-774-1813.
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