Offer In Compromise
Did you know that you can settle your tax debt for less than the amount you owe?
If you owe back taxes but cannot pay in full or through the established repayment plan, do not fret. The government has devised programs that can help reduce your total debt so that you can lead a normal life again. The process of decreasing your tax debt is known as an ‘offer in compromise’. The internal revenue service will analyze your proposal according to its determination of your "reasonable collection potential."
How to Make an OIC (Offer in Compromise)?
Here are a few steps that you need to follow to make an OIC:
- Compile all information pertaining to your outstanding tax bill.
- Make arrangements to finance your tax settlement offer.
- Figure out what payment type you can handle- a lump sum or installments?
- Gather all the required financial documents including, assets, debts you owe, cash you have available, income records, and employment records.
- Fill out IRS Form 656
- Pay the obligatory filing fee and file your OIC
If you owe a big amount, consider hiring a tax professional to help you negotiate with the internal revenue service. At Fay Jamasbi, we offer our customers complete assistance, from filing for an OIC to negotiating with the government. While we may not always be able to let you walk away without paying anything, we can assist you in settling for an affordable amount.
If done the right way your debt can be settled for merely 5-15% of what you owe presently. The key is to come up with the least amount that the internal revenue service will accept from you before making an offer. To determine the right calculation, seek help from our tax experts immediately. We will ensure the best solution for your problem!