One of the biggest myths about the IRS is that they aren’t willing to work with taxpayers when it comes to fulfilling their tax liabilities. In fact, there are several programs and options in place which can help you settle your tax bill. One of the most effective is the Offer-in-Compromise program. This program allows taxpayers, under certain circumstances, to settle their debt with the IRS for less than what they originally owed in taxes.
To be eligible for an Offer-in-Compromise you must have filed all of your tax returns and not be in bankruptcy. You must then demonstrate that you are completely unable to afford the tax bill or that paying the full bill would create an undue economic hardship.
To make an offer in compromise you must submit an application to the IRS using form 656 and offer the IRS a specific amount to settle all of your outstanding tax liabilities. If accepted, the IRS will reduce your tax debt to the amount you offered.
If you are considering an Offer-in-Compromise, contact our office. We can help you with this process and increase the likelihood that the IRS will accept your offer.
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- The IRS Makes Mistakes Too - September 1, 2023
- Should You Be Withholding More From Your Paycheck? - August 1, 2023
- Don’t Get Tripped Up By Forms 433-A and 433-B - July 10, 2023
