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When you hear about “settling for pennies on the dollar” an offer in compromise is how it is done. An offer in compromise is becoming a more common way for taxpayers to settle their back taxes. An offer in compromise is a good program for many taxpayers with tax problems. An offer in compromise is a formal way to negotiate your tax debts with the internal revenue service. An offer in compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability. An offer in compromise is a legitimate alternative to declaring a case as currently not collectible, or to a protracted installment agreement. Taxpayers must remain current with respect to their future filings for a minimum of three (3) years after an offer in compromise is accepted. The biggest disadvantage to an offer in compromise is that filing an offer, delays the 10-year statute on collecting tax debts. This means the IRS may have extra time to collect on tax debts if an offer in compromise is rejected.
An offer in compromise is a lengthy and time-consuming process. Obviously, the key question in an offer in compromise is the amount the taxpayer will have to pay. The offer should include a discussion setting forth the reasons that an offer in compromise is appropriate. An offer in compromise is filed using IRS form 656, accompanied by form 433-a and/or 433-b. An offer in compromise may be a technique used to remove a tax lien. Getting a levy released through the filing an offer in compromise is also possible but is not an exact science.
Filing an offer in compromise is not easy. Filing an offer in compromise is very dangerous territory for a taxpayer to traverse without professional help. Generally, seeking professional advice for an offer in compromise is highly recommended. We would be happy to review all of your information and see if an offer in compromise is a possible solution for you. Please give us a call at 770-956-0134 and mention offer code 123 or fill out the contact form on our Contact Us page.
