What Is The Offer In Compromise Program?
- Assets are Real property
- Investment accounts
- Whole life insurance policies
- Retirement accounts
- Bank accounts
- Own business
- Equity in assets
it also takes into thought a taxpayer's total household income versus their total household expenses. Once the financial result of income and expenses is achieved, net discretionary income is figured. This figure will show that a taxpayer has an ability to pay or that their leftover income is in the negative. If negative, the taxpayer is in financial hardship. If under any event you become incapable of paying the full amount of your tax liability within the IRS collection timeframe, you will more than likely qualify for an Offer.
Installment Agreement Offer
These tax experts know all the rules and regulations within the IRS manual.They are experienced in walking the taxpayer through the most efficient steps to get to the preferred result. Having a trained firm and active Power of Attorney (POA) on your case gives both security and a knowledge benefit that a taxpayer needs when working with the IRS in defining your tax duties.
WHAT ARE THE DIFFERENT TYPES OF OFFERS?
There are three types of an Offer in Compromise that may be sent to the IRS. The most common type being the “Doubt as to Collectability”. This Offer option would be most ideal for taxpayers who are not able to pay the full amount of the tax liability and are looking to settle for a total offer amount that is less than the federal tax amount owed. The IRS provides an Offer booklet in which all the needed forms to complete the request can be found. First, a taxpayer will have to submit a Form 656, Offer in Compromise. In addition, you will need to include a financial statement; Form 433-A(OIC) for individuals and Form 433-B(OIC) for businesses, along with all supporting documents to show the current asset value, monthly income, expenses and liabilities.
Doubt and Liability
Why Do You Have To Pay an Application Fee?
Upon acceptance, the leftover totalof the offer amount must be paid within five months. A periodic payment method requires that the taxpayer make 24-monthequal payments of the offer amount even while the request is pending review.
What Happens After Acceptance?
Omni Tax Help
Once all payments are remitted according to the schedule chosen with the Offer, any liens that have been placed on your assets will be removed. However, if any of the Offer in Compromiserules are broken within the five-year period, then the Offer in Compromise request will be null and void. Once the Offer is returned, all balances will be put back into the total liability. At that time, the offer will be rejected, and liens will be re-filed against your assets.