If at all you are a taxpayer and you are faced with such financial hardships that make it harder for you to pay up your taxes as is due to the IRS, then chances are so high that you have already heard of the Offer-in-compromise plans or programs. By and large, the OIC program allows you as a taxpayer to pay your tax debt for less than what is actually due from you to the authorities. This is an open option that you may want to consider in the event that you are not in a position to pay what you owe or where paying it all will result in monetary privation. Generally speaking, this program from the IRS is one program for settlement of taxes offered by the IRS that allows burdened taxpayers sort out their taxes and get back to compliance as should be with the authorities.
One thing that you should know of as you think of making an application for an offer-in-compromise settlement is that the IRS will approve an application for the program if at all the amount offered by the applicant is one that they expect to collect within a reasonable period of time. We would advise that before you consider submitting an application to be entered under the OIC plan, first take a look at the other available payment options and plans there are to help you clear your owed taxes with the IRS.
Fact is that in as much as it is an open program, it is not meant for all. Your tax consultant should advise you on the best way forward for you to deal with your back taxes and see if at all the offer-in-compromise would be the best for you. In case you are thinking of getting the opinion of the tax experts to help you with these matters, you should be very careful with the choice you make and see to it that they are indeed qualified tax professionals. The following are some of the basics that you should identify of as you contemplate an offer-in-compromise application.
First, you should see to it that you are entitled. Talking of qualification, you need to know of some of the things that the IRS looks at. There are some unassuming errors that you may make in the process of application that may end up seeing your application thwarted. A good example is such as where you happen to submit your application for the offer in compromise program but you don’t furnish the IRS with your tax returns and as well fail to make any required estimates of payments. For those who may be in an open insolvency case, then stand aware that this technically disqualifies you.