Taxpayers who are facing financial hardships and as such are unable to pay your taxes to the IRS, then you must have already been told of the offer-in-compromise plans there are with the IRS. Generally, the offer-in-compromise program is one established by the IRS that allows such strained taxpayers an opportunity to settle their tax debts for less than what they actually owe to the IRS. It is an option that is available to you if you cannot pay your tax debt in full or if doing so will result in some monetary adversity for you. By and large, this is a program that has been so helpful for taxpayers who are facing such financial difficulties sort out their issues with the IRS and get back to compliance.
Going forward, it is important to note the fact that the IRS will approve an application for admission into the OIC program only where the amount offered is one that they can reasonably expect to collect with the given time period. It would be wise of you to first take a look at all the other available clearance procedures before you finally make an application for an OIC admission.
What you should know and appreciate going forward is that in as much as it is an open program, the offer-in-compromise program is not for all and sundry anyway. Talk to your tax consultant for you to know if at all the OIC program will be the best way out for you to settling your tax debt or better still advise you on the best way forward. If at all you are going to hire a tax professional for this, then you should be very careful with the one you choose and ensure that they are duly qualified. The following are some of the basics that you should identify of as you contemplate an offer-in-compromise application.
The first thing that you are to do as you consider the offer-in-compromise plans for your needs is to make sure that you are qualified. And for qualification, there are some things that the IRS considers. There are some mistakes that you may make during your application that may see your application rejected. These are such cases like where you make an application for these programs and fail to furnish your tax returns and or fail to indicate what payments you are to make. For those who may be in an open insolvency case, then stand aware that this technically disqualifies you.