Offer In Compromise Installment Agreement

Offer In Compromise Installment Agreement

A compromise offer allows you to settle your tax debts for less than the full amount you owe. This can be a legitimate option if you can`t pay your full tax debt, or it creates financial rigor. We take into account your unique facts and circumstances, but you will not be approved if you are eligible for one of the temperable contracts. If so, the IRS is paying that you have sufficient resources to fully settle your tax debts over time. In considering whether a taxpayer can settle his bill with a compromise offer, the IRS will look at the taxpayer`s unique circumstances, including their income, ability to pay, expenses, and all the assets that taxpayers owe. Working with the IRS to secure an accepted OIC can be beneficial to both the IRS and the taxpayer. The IRS believes that accepting the offer can give the taxpayer a fresh start and assist future tax returns and payments. The debtor also benefits because the offer is due for less than the amount actually due, and it can often be paid either over time or in a lump sum. If the IRS accepts the taxpayer`s offer, the taxpayer will have agreed to fully comply with the tax legislation. In addition, all repayments due in the calendar year in which the offer is accepted apply to the tax debt. If the taxpayer does not comply with all the conditions of the OIC, the IRS may find that the OIC is lagging behind. If there is any doubt about the collection capacity and effective tax administration oIC, the conditions include the obligation for the taxpayer to file all tax returns in a timely manner and to pay all taxes in a timely manner for 5 years from the date of adoption of the OIC.

If the IRS terminates an OIC, the contract is no longer in effect and the IRS can then collect the original amounts (minus the payments made) plus interest and penalties. If you comply with the low income certification rules, you don`t need to send the registration fee or the first payment and you don`t need monthly payments during the evaluation of your offer. For more information, check out your application program. While it is beneficial to both the taxpayer and the IRS, it can be extremely difficult to negotiate the creation of a phased agreement.


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