Do you have a tax problem that involves a balance due that you cannot pay? This can be a terrifying and stressful situation that can keep you up at night with unimaginable fears. Rest assured, you are not alone, and help is available.
Have you heard about an Offer in Compromise in ads while you’re unable to sleep or on your way to work? If so, you may wonder what exactly an Offer in Compromise is and if it could be your ticket to solving your tax problems. The short answer is, maybe so.
Contrary to what many of the ads push, an Offer in Compromise is not a new option for fixing tax problems, not everybody qualifies, and it is not a limited time offer. Now that I’ve as good as dashed your hopes, let’s examine what an Offer in Compromise actually is and how it might very well be an option for you to work through your tax problem.
What exactly is an Offer in Compromise? It is essentially a contractual offer to “settle” your tax balance for less than the full amount you owe. The purpose of an Offer in Compromise is to give you an opportunity to fix your tax problem if you are struggling financially. If approved, an Offer in Compromise could result in an agreement between the you and the IRS whereby you agree to pay as much as you can toward your tax balance and comply with several other contractual terms. In return, the IRS agrees to resolve the total amount of the balance due for the offered amount as long as you uphold your end of the bargain.
The process of requesting an Offer in Compromise can be a rigorous and time consuming process. Several forms with complicated calculations about the tax balance, your income, and your necessary monthly expenses – with documented substantiation related to your situation – and application fees are required. The application that is submitted must prove that you are in a position of financial hardship, and that paying the full tax balance would cause further financial hardship. Though it is a complicated path, if the facts and information are there, it is not impossible to meet the burden of proof required to qualify for an Offer in Compromise.
An Offer in Compromise is not available for each situation and the IRS isn’t going to simply take your word for it. They will review the forms and documentation submitted to review and analyze your financial situation thoroughly before making a final determination. If the determination is in your favor, this could be a huge relief and step in the right direction for fixing your tax problem.
For help navigating your tax problems and negotiating a resolution, contact the experienced tax team at the Business Law Group. Our team is ready to help you by taking the burden of dealing with the IRS and helping you navigate your tax problem to find a resolution tailored to your situation. Call us at (719) 355-8840 or email info@businesslawgroup.us to get started today.
