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Understanding Offer In Compromise
An Offer In Compromise (OIC) is a tax relief agreement between a taxpayer and the Internal Revenue Service (IRS). Essentially, it permits taxpayers to settle their tax debts for lower than the full amount they owe. OICs can be fantastic options for individuals or businesses under significant tax burdens. but there are crucial points to remember:
– An OIC isn’t guaranteed. The IRS accepts only if they believe it’s unlikely you will pay the full amount through future income or liquidation of your assets.
– Payment terms may vary. You can either make a lump-sum payment or opt for monthly installments.
When to Consider an Offer In Compromise
You should consider an offer in compromise Attorney when you absolutely. cannot pay your tax debt or when doing so would create a significant financial hardship. The IRS has provided an online tool, the OIC pre-qualifier, to help assess if you might be an eligible candidate.
The OIC Process
To apply for an OIC, you will need to complete Form 656-B, which includes Form 656, the Offer in Compromise. You should also provide supporting documentation for your financial condition and a detailed explanation of your financial hardship.
The Advantage of Using a Tax Attorney
A Texas-based tax attorney like IRSProb can guide you through the complex OIC process. They have the expertise to understand the intricate IRS rules and can help you increase your chances of getting your Offer In Compromise accepted.
In a nutshell, an Offer In Compromise is the beacon of hope for those under the heavy burden of tax debt. It provides a path to financial recovery. However, navigating this path successfully often requires the expert advice of a skilled tax attorney.
