The offer in compromise
- By Jack Landry
- Published 04/6/2010
- Auditing
- Unrated
The offer in compromise
In a financial crisis such as the economy right now, many people fall behind in their payments to the IRS. No matter the excuse, the IRS is not very lenient and can be difficult to compromise with.
In this situation it is vital to ask for the help of a Tax Resolution Specialist. They know the ins and outs of the IRS and what can legally be done to lower the consequences of falling behind on your taxes.
A Tax Resolution Specialist may be able to help you avoid jail, wage garnishments, and tax liens. They will also know the best way to negotiate to get you the lowest amount possible in debt that you owe to the IRS.
Through working with a Tax Specialist, you will also have a higher chance of being eligible for and IRS payment plan which may be able to alleviate bank levies, tax liens, and wage garnishments.
After selecting a Specialist to work with, the first thing they will do is fill out an Offer in Compromise (OIC) settlement. The process to fill out this form through IRS's website can seem like a simple tax, but you do not want to take the risk of messing up on it after you are already in trouble with the IRS.
A Specialist will help you avoid any errors. The Offer In Compromise form is a process that benefits you as the debtor.
When you fill it out you are basically taking full responsibility for the back taxes that you owe so that the IRS may grant you a lighter penalty. This form is similar to pleading guilty in court in exchange for a lighter sentence.
However, in this case it is most likely not to your benefit to plead not-guilty unless you truly do not owe any back taxes. This negotiation is your brightest hope for reduced penalties from the IRS.
Let an experienced professional handle it as they will know every trick in the book to save you as much money as possible. Your best opportunities and chances to avoid jail and large fees are to trust Certified Tax Resolution specialists.
Recently there have been several changes made to the Offer in Compromise applications and rules. One main change is that if you owe less than $10,000 and this is your first time in trouble, IRS will automatically qualify you for a payment plan that will last 36 months.
If you do not fit these specifications, there are still other options. Through the Offer in Compromise, IRS will compromise with you.
With the help of a Certified Tax Resolution specialist, the determine amount that you will owe is often much less than you would owe in the first place. After this settlement and after you pay the debt, you will be put on tax probation.
This means that IRS will monitor your timely filing and paying of your taxes for the next five years. The amount you will have to pay is based on what the IRS thinks your reasonable collection potential (RCP) is.
Your RCP value is known as the taxpayer's, or your, value in real and personal assets and future income. The minimum amount that you should offer the IRS and have hope of receiving through an OIC should be at least the same amount as your reasonable collection potential.
However, before your Certified Tax Resolution Specialist can do anything you will have to properly file your taxes with the IRS. Once you have admitted the full amount of your back taxes, the Certified Tax Resolution Specialist will be able to help you.
Occasionally people will use the Offer in Compromise process as a way to hinder payment of taxes to the IRS. If the IRS thinks that you are doing this, they will not grant you the compromise.
Sometimes those who are not guilty of abusing the Offer in Compromise process are accused and their offer is rejected. This is only one of many instances where Certified Tax Resolution Specialists can help you resolve the situation and get your offer granted.
There are many hurtles that a Certified Tax Resolution Specialist can help you jump and gates that they can open. Do not hesitate to ask for assistance if you are in trouble with the IRS.
In this situation it is vital to ask for the help of a Tax Resolution Specialist. They know the ins and outs of the IRS and what can legally be done to lower the consequences of falling behind on your taxes.
A Tax Resolution Specialist may be able to help you avoid jail, wage garnishments, and tax liens. They will also know the best way to negotiate to get you the lowest amount possible in debt that you owe to the IRS.
Through working with a Tax Specialist, you will also have a higher chance of being eligible for and IRS payment plan which may be able to alleviate bank levies, tax liens, and wage garnishments.
After selecting a Specialist to work with, the first thing they will do is fill out an Offer in Compromise (OIC) settlement. The process to fill out this form through IRS's website can seem like a simple tax, but you do not want to take the risk of messing up on it after you are already in trouble with the IRS.
A Specialist will help you avoid any errors. The Offer In Compromise form is a process that benefits you as the debtor.
When you fill it out you are basically taking full responsibility for the back taxes that you owe so that the IRS may grant you a lighter penalty. This form is similar to pleading guilty in court in exchange for a lighter sentence.
However, in this case it is most likely not to your benefit to plead not-guilty unless you truly do not owe any back taxes. This negotiation is your brightest hope for reduced penalties from the IRS.
Let an experienced professional handle it as they will know every trick in the book to save you as much money as possible. Your best opportunities and chances to avoid jail and large fees are to trust Certified Tax Resolution specialists.
Recently there have been several changes made to the Offer in Compromise applications and rules. One main change is that if you owe less than $10,000 and this is your first time in trouble, IRS will automatically qualify you for a payment plan that will last 36 months.
If you do not fit these specifications, there are still other options. Through the Offer in Compromise, IRS will compromise with you.
With the help of a Certified Tax Resolution specialist, the determine amount that you will owe is often much less than you would owe in the first place. After this settlement and after you pay the debt, you will be put on tax probation.
This means that IRS will monitor your timely filing and paying of your taxes for the next five years. The amount you will have to pay is based on what the IRS thinks your reasonable collection potential (RCP) is.
Your RCP value is known as the taxpayer's, or your, value in real and personal assets and future income. The minimum amount that you should offer the IRS and have hope of receiving through an OIC should be at least the same amount as your reasonable collection potential.
However, before your Certified Tax Resolution Specialist can do anything you will have to properly file your taxes with the IRS. Once you have admitted the full amount of your back taxes, the Certified Tax Resolution Specialist will be able to help you.
Occasionally people will use the Offer in Compromise process as a way to hinder payment of taxes to the IRS. If the IRS thinks that you are doing this, they will not grant you the compromise.
Sometimes those who are not guilty of abusing the Offer in Compromise process are accused and their offer is rejected. This is only one of many instances where Certified Tax Resolution Specialists can help you resolve the situation and get your offer granted.
There are many hurtles that a Certified Tax Resolution Specialist can help you jump and gates that they can open. Do not hesitate to ask for assistance if you are in trouble with the IRS.
Jack Landry
Jack R. Landry has worked since 1988 as a tax attorney. He has written hundreds of articles about finding an Orange County tax attorney. Contact Info: Jack R. Landry JackRLandry@gmail.com http://www.TaxCrisisInstitute.com
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