Let’s Make a Deal with the IRS
Offer-In-Compromise is a specialized field. Making an offer-in-compromise implies you want to settle your tax debt for less than the full amount owed. In considering what will be acceptable, the IRS will look at income, expenses, equity, liability, and your current and future financial situation. If you are genuine about your situation, the IRS will generally accept an offer that depicts what they can expect within a reasonable timeline. The IRS calls this RCP, Reasonable Collection Potential. It measures the taxpayer’s ability to pay. Doing so requires measuring not only your current but future anticipated income. Per IRS suggestion, you should check the qualification of whomever you want to hire to guide you through this complicated process known as Offer-In-Compromise.
How can you qualify?
Eligibility means you must be current with all your tax filing and have made all required estimated tax payments for the current year. For a business owner with employees, you must be current with your quarterly payroll deposit. If your bankruptcy is still pending, you do not qualify. Most often if the IRS believes the taxpayer can fully pay through either installment or other means, then he or she may not qualify. Use the IRS Pre-qualifier as a starting tool. Checkout the IRS guide, Offer-In-Compromise Booklet, Form 656-B. Completing the offer package can be frustrating and confusing. Please contact our office if you need help.
For an Offer-In-Compromise with the IRS, the application fee is $150. In addition, there is an offer for payment, either in the form of a lump sum or in installment. Lump sum does not imply one payment, but rather 5 or fewer payments within 24 months after the offer is accepted. The installments should equal 20 percent of the Offer-In-Compromise amount. Note that the fees are nonrefundable.
ITS has extensive experience handling tax resolution issues. With several in-house Enrolled Agents, we can leverage the necessary resource to solve most complicated tax issue. Call our office at 424-999-8829 for more information.
Learn more about ITS Financial Group, Inc, call 424-999-8829 or schedule an initial consultation.Google+