Offer In Compromise: What You Must Know?
If you owe past taxes, getting immediate protection from IRS collection efforts might be your first priority. Debt forgiveness frequently comes in second. Sometimes, IRS will accept a settlement, which is referred to as an OIC (Offer in Compromise). Your overall tax obligation is decreased by an OIC.
Besides, OIC is an agreement between you and IRS, which is made stating that you pay the agreed amount, which would be lower than the owed amount. The OIC is frequently the most successful means of releasing oneself from the burden of IRS tax obligation.
You must first be eligible for an Offer in Compromise with the IRS before you can apply for one:
- Before applying for OIS, you must know what is the eligibility criteria. Look below to know about it.
- Firstly, confirm if the IRS has sent you a bill for unpaid taxes.
- Keep your recent taxes in order. Before making a settlement offer, you must submit all necessary tax returns and make all necessary estimated tax payments for the current year.
- You need to wait for making an OIC, if you have an active bankruptcy case.
Before submitting OIC, you must carefully evaluate your possibilities. If you are not the right candidate for settlement, you better not apply for settlement as it would be a waste of your money and time.
If you are new to all of this and have so many questions in your mind about OIC, you could meet a tax relief professional. When you hire a tax relief professional, he or she will prepare all the paperwork required for sending an OIC application. When requesting for an OIC, your tax professional may ask your investment statements, bank statements for the last 3 to 6 months, and other documents.
Never rush when hiring a tax relief professional. Remember, experienced tax relief professionals can handle various kinds of tax issues well. In fact, they will suggest you the best options looking at your situation. Do not worry about their fee because you will be able to save a lot of money on taxes with their services. Compare the fee of various tax professionals in your location, to save your money.