An offer in compromise, is an attempt to settle your tax debt for less. There a few things you should know before you begin the application.
- The IRS wants your money, and they want the full of it, not a compromise or a settlement. So if the IRS finds a way to hold you to the original tax debt, they will. And they are very thorough at the Internal Revenue Service–so you need to be very thorough as well.
- There are sure fire ways to loose an offer incompromise: 1. if your annual income is big enough to accommodate full payment of the debt, the IRS will not okay an offer in compromise; 2. if you have assets that could be sold off to settle the full amount of the debt, the IRS will not agree to an offer in compromise.
It may seem obvious, but failure to assess the worth of an applicant against the balance of the debt results in a failed attempt at offer in compromise. So in order to reach an offer in compromise, you really need to know what your worth is stacked up against your debt and what it means. If you don’t do your homework, you are wasting your time and throwing the offer in compromise application fee down the drain. Huddleston Tax CPAs can advise you through the process; because, just like the IRS, we are thorough.
We’ve handled offer in compromise requests before. Contact us to hear more about the service we can provide you.
Give us a call and we’ll talk.