When you legally owe a tax debt, getting Offer In Compromise help can give you an opportunity to pay cents on a dollar as settlement. In other words, you pay less than you owe and the full debt is cleared. Naturally, not all offers are accepted by the IRS which is why you need to retain professional help.
Making An Offer the IRS Can?t Refuse
The concept behind the Offer In Compromise is this: you pay what you have the ability to pay. The concept is simple, but the IRS has to be convinced of several things before it will accept an offer.
- The offer reflects your true ability to pay
- The offer will net the most collection that could be expected through enforcement action
- The offer is the right alternative after considering other collection options
The Offer In Compromise is fairly complex and can take a long time to complete. That?s why you need Offer In Compromise help from an experienced tax negotiator. A professional tax representative understands the tax laws of course, but also understands how the IRS operates and how agents approach tax debt problems.
The result is that getting Offer In Compromise help can speed up the process in addition to insuring you get the best representation possible. The tax representative can work with you to prepare a defensible offer the IRS is more likely to accept. Since only up to 50% of all compromise offers are accepted, this is important to the success of your tax negotiations.
Not In Agreement
The Offer In Compromise serves another purpose too. When you believe you don?t owe the tax, but see court litigation as too costly, the compromise can have tax debt reconsidered. You may have to pay pennies on the dollar, but the final result can be a good compromise between 2 parties that don?t agree.
By obtaining Offer In Compromise help, you have a chance at clearing your tax liability and starting over again. If an offer is accepted, the past debts are settled in full after payment of the amount offered as a compromise. The benefits that follow this include a release of liens and levies and cessation of collection efforts.
Naturally, it takes skillful negotiation to get the IRS to accept an offer as submitted. The process includes verification of existing assets and equity. Getting Offer In Compromise help can result in all of your IRS debts being eliminated which includes not just taxes, but also penalties and interest.
The Offer In Compromise is a great way to start your tax life over again. It?s important to understand though that getting assistance with this process is important if you want to increase the odds of acceptance by the IRS. When you hire someone who has a good reputation in the eyes of the IRS, the agency is much more likely to be willing to accept the offer.