Question: How do I know if I qualify for the Offer in Compromise? I owe an enormous amount to the IRS, and I simply don’t think I can afford to pay it off.
Answer: Given your situation, you may well qualify for the Offer in Compromise. But to know for sure whether you qualify, you need to consult with a qualified tax professional.
In the meantime, let me give you some information about the Offer in Compromise that may help you determine whether it’s right for you, given your circumstances.
As you likely know, the IRS had a reputation for iron-fisted tax enforcement — with agents chasing down tax debtors around the country. But over time the IRS discovered that being more flexible can actually bring in more revenue to the government than being overbearing can — and bringing in revenue, after all, is the IRS’s primary function.
And so came the Offer in Compromise. This program allows indebted taxpayers, who are unable to pay off their tax debt, even over time, to negotiate a settlement amount with the IRS. This settlement amount often amounts to a substantial discount.
If you think this program could be right for you, the first step you should take is to consult with a qualified tax professional. He or she will analyze your tax returns to determine exactly how much you owe — oftentimes this process results in the lowering of tax obligations — and then your qualified tax professional will take your case to the IRS for negotiations.
Now is a great time to be researching the Offer in Compromise, as the IRS just announced new terms that make more taxpayers eligible for the program.
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!
- Reduce Tax Debt with the IRS Offer In Compromise Program
- IRS Offer in Compromise Tax Settlement Program: What You Need to Know
- For Taxpayers in Debt: IRS Offering Better Terms
- Settle Tax Debt with the IRS Offer in Compromise Program
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