IRS Offer in Compromise
Settle Smartly. Live Freely!
Are you in debt? Unfortunately, many Americans are. But, don't let tax debt weigh you down. Our expert CPAs and former IRS agents are here to help you drastically reduce your debt with an IRS Offer in Compromise. Your journey to financial freedom starts now!
IRS Offer in Compromise: Understanding What it is In-depth
The IRS offer in compromise is a lifeline for those drowning in tax debt. It is a program by the IRS that allows you to settle your tax debts for less than what you actually owe. Yes, it is possible to work an Offer in Compromise. The Offer in Compromise IRS program is designed to help you clear your debts and move forward, without the weight of tax debt holding you down.
But, how does it work? You have to make an offer to the IRS, telling them how much you can afford. The IRS will then take a good look at your finances – your income, expenses, and assets – to decide whether to accept your offer or not. It’s important to make a fair offer based on your financial situation because the IRS won’t just accept any amount.
Remember, the IRS wants to collect as much as they can, but they also understand that getting something is better than nothing at all. So, if your financial situation shows that your offer is the most they can expect to collect within a reasonable period, they might just accept it.
Also, don’t forget that there are some boxes you need to tick before you can apply for an IRS offer in compromise. You need to be current with all filing and payment requirements. And of course, you’ll need to fill out some forms and pay an application fee.
However, the IRS doesn’t accept every offeTheyhey reject a lot of them. This is part of the reason why it’s important to work with a tax expert and make a strong case. Show the IRS that you’re serious and that your offer is the best they’re going to get. And if the IRS does accept your offer, make sure you stick to the terms of the agreement and stay up-to-date with your tax obligations. Otherwise, your offer could be revoked.
So, if you’re in a tough spot with tax debt, an IRS offer in compromise could be a way out. Just make sure you understand the process, make a fair offer, and keep up with your end of the bargain. And don’t hesitate to seek help from our in-house tax professionals. Being former IRS agents, they know how to navigate the process and increase your chances of success.
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IRS Offer in Compromise: Check if you Qualify!
Qualifying for an IRS Offer in Compromise (OIC) is not a one-size-fits-all situation. The IRS is quite particular about who they allow to settle their tax debt for less than what they owe. Here’s what you need to know about qualifying for an IRS offer in compromise:
It’s important to remember that the IRS does not accept every offer they receive. They will only agree to an OIC if they believe it is the most they can collect from you in a reasonable amount of time. It’s also worth noting that there are different types of OICs: lump-sum cash offers and periodic payment offers. The type of offer you choose will impact the amount you need to pay and the timeframe in which you need to pay it.
Here are some additional details of an OIC Eligibility!
Know the Benefits of an IRS Offer in Compromise from Former IRS Agents
Are you stressed about your outstanding tax debt? An Offer in Compromise to IRS could be your ticket to a fresh start. Our team of former IRS agents has the expertise and insider knowledge to guide you through the process of offers in compromise IRS. But first, let’s delve into the key benefits of an IRS offer in compromise.
Settle for Less
The most appealing benefit of an offer in compromise is that it allows you to settle your tax debt for less than what you owe. This can be a lifeline for those who are genuinely unable to pay their full tax liability.
Stop IRS Collection Activities
Once you submit an offer in compromise to IRS, the IRS will generally halt all collection activities until your offer is assessed. This means no more nerve-wracking calls or letters from the IRS, and no levies on your bank accounts or wages.
Avoid IRS Tax Liens
A successful offer in compromise can prevent the IRS from placing a tax lien on your property, which can damage your credit and make it difficult to sell or refinance your property.
Get a Fresh Start
Acceptance of your offer means you can wipe the slate clean and start anew. You’ll be free from the burden of your past tax debt as long as you stay in compliance with all tax obligations moving forward.
We understand the IRS’s inner workings, which gives us an edge in preparing an offer that meets the IRS’s criteria while being favorable to you. Remember, not everyone is eligible for an offer in compromise, and it is not always the best option for everyone. Let our experienced team guide you through the process and help you take the first step towards financial freedom.
With Ponci-Tax Resolution Experts, Get Ready-to-go Solutions for your Offer in Compromise Problems
Facing a mountain of tax debt? An offer in compromise to IRS could be your ticket to a fresh financial start. With Ponci-Tax Resolution Experts, make this complicated process a whole lot easier.
Why Choose Us?
Facing a mountain of tax debt? An offer in compromise to IRS could be your ticket to a fresh financial start. With Ponci-Tax Resolution Experts, make this complicated process a whole lot easier.
Expert Advice from Former IRS Agents & CPAs
Our team has hands-on experience with offers in compromise IRS procedures. We know the ins and outs and can guide you to make the most suitable offer based on your individual financial status. How? Because we’ve a team that knows the IRS system from the inside because they were once part of it.
Personalized Roadmap for IRS Offer in Compromise
One-size-fits-all doesn't apply here. We tailor our strategies to align perfectly with your specific circumstances. That means an offer in compromise to IRS that's truly geared for success.
Transparent Process for all your Tax Problems
We keep you in the loop, always. You'll know exactly what’s happening with your case at each stage, so you’re never left wondering
24/7 Availability
Do you have a question or need an update at an odd hour? No worries. Tax troubles don't stick to a 9-to-5 schedule, and neither do we.
First Free Consultation
Not sure if an offer in compromise is your best option? Take advantage of our complimentary first consultation to learn about your possibilities.
A Friendly Team
Yes, this is formal business, but who says it can't be done with a warm and approachable attitude? We believe in balancing professionalism with a touch of friendliness.
Our experts helped more than 190 taxpayers in 41+ years. Want to be among our success stories? Let’s talk.
File for IRS Offer in Compromise with Ponci-Tax Resolution Experts!
Here’s how you do it:
– ‘IRS Form 656, ‘Offer in Compromise‘: This is the main form where you’ll list your offer amount and the terms of payment.
– IRS Form 433-A (OIC), ‘Collection Information Statement for Wage Earners and Self-Employed Individuals,’ or IRS Form 433-B (OIC), ‘Collection Information Statement for Businesses’: These forms provide detailed information about your financial situation.
Remember, filing an IRS Offer in Compromise is not a guarantee that your tax debt will be settled for less. The IRS scrutinizes every offer carefully. So, if you’re looking for IRS Offer in Compromise help, get proper guidance from IRS experts at Ponci-Tax Resolution Experts and maximize your chances of success!
What happens if my IRS Offer in Compromise is not accepted?
It’s definitely a letdown when your IRS Offer in Compromise is not accepted, but it’s not the end of the road. Here’s what you need to know and the steps you can take next:
Understand the Reason
The IRS will provide a detailed explanation of why your offer was not accepted. Common reasons include: your offer was too low, the IRS believes you can pay the amount in full, or your financial situation indicates that you can pay more than you offered.
Reevaluate Your Situation
Take a good look at the reasons provided by the IRS and assess whether there are any changes or additional information that may influence the IRS’s decision. Did you include all your expenses? Did you accurately estimate your future income? Make sure all your information is accurate and complete.
Appeal the Decision
If you believe that the IRS’s decision was incorrect, or if your circumstances have changed, you can appeal the decision within 30 days of receiving the rejection letter. You will need to complete IRS Form 13711, 'Request for Appeal of Offer in Compromise,' and send it to the IRS office that made the decision.
Consider Other Options
If appealing is not the right move for you, or if your appeal is unsuccessful, there are other options available to manage your tax debt, such as setting up an installment agreement or temporarily delaying the collection process due to financial hardship.
Remember to act quickly once you receive the rejection letter, as there is a limited time to appeal the decision. Seeking IRS Offer in Compromise help from an expert can be invaluable during this process. They can help you understand the IRS’s decision, assess your options, and guide you through the appeal process or any other suitable alternatives.
Ponci-Tax Resolution is your go-to for all Tax Problems!
Facing tax problems can be overwhelming and stressful, but you don’t have to deal with them alone. At Ponci-Tax Resolution, you’ll get the solutions you deserve. Our team of tax experts are here to provide personalized solutions tailored to your situation.
We care for you.
Whether you need help with IRS back taxes, IRS audit representation, unfiled tax returns, or passport revocation issues, we know how to handle it. Our goal is to not only resolve your tax problems but to also ensure you understand the process and feel confident about the path ahead.
Remember, tax issues won’t disappear on their own. Take control of your financial future by partnering with Ponci-Tax Resolution. We are dedicated to helping you overcome your tax challenges and get back on track. Get in touch today to get your free consultation and take the first step towards resolving your tax problems.
FAQs about IRS Offer in Compromise
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. It is an option provided by the IRS to help taxpayers who are unable to pay their tax debt in full, or for whom paying in full would cause a financial hardship.
To be eligible for an OIC, a taxpayer must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees. Additionally, the IRS must determine that the taxpayer is unable to pay the tax debt in full, or that doing so would cause a financial hardship.
To apply for an OIC, you must submit Form 656, Offer in Compromise, and Form 433-A (OIC) (individuals) or Form 433-B (OIC) (businesses), Collection Information Statement. You also must include the application fee and initial payment as described in the Form 656 booklet.
The acceptance of an OIC is at the discretion of the IRS and is based on a thorough review of the taxpayer’s financial situation. The IRS considers various factors including the taxpayer’s ability to pay, income, expenses, and asset equity. The IRS generally accepts an OIC when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential.
The time it takes for the IRS to decide on an OIC varies based on the complexity of the case. However, it generally takes the IRS about 6-9 months to make a decision, but it can take longer in complex cases.
If your OIC is accepted, you must meet all the terms of the agreement, including filing all required tax returns and making all payments as agreed upon. If you fulfill all the terms of the agreement, the IRS will release any federal tax liens filed against you, and you will be clear of your tax debt.
If your OIC is rejected, the IRS will notify you by mail with a detailed explanation of the reason for rejection. You have the right to appeal the decision within 30 days from the date of the letter.