How can I get my tax debt forgiven?
When taxes are delinquent or overdue, usually from previous years, they are known as back taxes. And if you owe them, you may be wondering about tax relief. With Tax Alliance’s help, it may be possible to wipe your tax debt clean at a substantial discount. If you get approved for an Offer in Compromise, or “OIC,” the IRS will approve less than the amount a taxpayer owes on a tax bill and call it even.
What is an Offer in Compromise?
An Offer in Compromise (OIC) is an agreement between the taxpayer and the IRS that settles the tax liability for less than the amount owed. The Offer in Compromise can in some cases be a life-altering kind of tax resolution for those that really need it. On average, individuals that settle their debt utilizing the Offer in Compromise approach end up paying less than the actual amount owed.
An Offer in Compromise allows you to resolve your tax debt for less than the full amount you owe. It could be a valid option if you can’t pay your total tax responsibility, or doing so produces a financial challenge.
The IRS will consider your situation based on an unique set of facts and circumstances, such as:
- Ability to pay
- Earnings
- Expenses
- Possession equity
The IRS typically approves an Offer in Compromise when the amount offered represents the most they can presume to collect within a sensible amount of time. The Offer in Compromise program is not for everyone. Get in touch with us to learn more and to see if you’re approved for the program.
Make Sure You Are Qualified
The Internal Revenue Service will only consider an offer in compromise if it is for one of the following factors:
- There is uncertainty regarding whether the IRS properly identified the amount you owe.
- There is doubt concerning whether the debt is completely collectible. This means your assets as well as earnings are less than the quantity you owe.
- The debt is appropriate, and you have the ability to pay the debt entirely, yet doing so would create needless financial hardship. This is called effective tax management.
The IRS will dismiss your offer if any of the adhering to are true:
- You remain in an open bankruptcy case.
- You have actually not filed the required federal tax returns.
- You have not made the required estimated tax repayments.
- You are self-employed, have employees, and also have not submitted the required federal government tax down payments.
The Internal Revenue Service will return any type of recently submitted Offer in Compromise (OIC) application if you have not filed all required tax returns and have not made any kind of required estimated repayments. Any application fee included with the OIC will also be returned. Any type of preliminary settlement required with the returned application will be placed to decrease your debt. This policy does not relate to the current year income tax return if there is a valid extension on the documents.
Call Tax Alliance for Your Tax Relief Needs
Although owing the IRS is an overwhelming feeling, it’ll just get worse if you don’t face what you owe and make a plan moving forward.
While you may not want to reach into your pockets to pay a tax expert to help with your tax relief, you’ll more than likely save money in the long run if you do.
Check out some of our tax relief services or give us a call for a consultation. Even if you still owe, you’ll have peace of mind knowing a professional is working hard to reduce your amount owed, as much as they can.
