|
|
Tips For A Successful IRS Offer in Compromise
Often there are circumstances that arise when a taxpayer has accumulated a substantial tax liability that clearly exceeds any ability to pay in a lump sum. In this situation, the taxpayer should consider hiring an Offer in Compromise attorney to handle the negotiations with the IRS.
The IRS applies the same collection standards utilized in installment agreements to offers in compromises. They will allocate an amount for clothing, food, housing related costs, vehicle transportation, and medical or dental costs. They will also consider any legal cash commitments like student loans, alimony and child support. Ultimately, based on this analysis, the IRS determines whether it is possible to grant relief under an offer in compromise.
Most offers in compromise are denied as the IRS recently stated that over 83% of the offers are rejected. The two main reasons that rejection occurs is because the documentation is inaccurate or incomplete or the taxpayer earns in excess of the required allowance. Your offer in compromise attorney will make sure that your filing is accurate and complete.
If the IRS sends you a response, make sure that you respond promptly. You may only have a few weeks to get the final information prepared and submitted back to the IRS. Failing to timely respond is often a reason for rejection.
Upon final review, the IRS assesses the taxpayer's collection potential. This is where many offers breakdown. The taxpayer may not have the funds currently, but they are generating income and have the ability to pay off the entire balance over time. Under these circumstances, the IRS would prefer an installment agreement rather than an offer in compromise.
But hope is not lost if you are rejected. Just make that when you solicit offer in compromise help that you get what you are paying for.
Offer in compromise help can come from many tax professionals. Whoever you select to help you in the process, just make sure that you are able to communicate freely with them and they understand your situation. This will give you the best chance for success.
About the Author Author background: If you are searching for FREE information regarding how to get your offer in compromise approved, please visit us here === An Offer in Compromise. Should you have questions or are looking for valuable information on completing an offer in compromise please visit our site here === Form 656 & Form 656-L.
|
 |
Please Rate: |
|
Rating: |
 Processing ... |
(Average: Not rated) |
| Views: | 19 | |
|
| More Articles from Taxes | | |
| Top Articles in Taxes | | |
|
