When tax debt is overwhelming, an IRS offer in compromise can be one of the best chances a filer has to wipe the slate clean and decrease the amount they owe at the same time. The IRS is known to settle for less than the entire amount they’re owed in many cases, so a well-organized and reasonable offer in compromise may provide leniency and relief to a taxpayer.
Don’t risk a rejected offer. Instead, work with tax professionals from Instant Tax Solutions to put together a comprehensive and sensible offer in compromise that maximizes your chance for success.
One of our tax experts can overview your tax history to map out a productive plan for your unique situation and then guide you through it.
Tax specialists are standing by to help you get started on cleaning your slate with the IRS. A consultation with an Instant Tax Services tax professional is free, confidential, and comes with no obligation to commit to services.
Call (888) 485-8109 or contact us online to schedule your free appointment today!
Get Comprehensive Boise Offer in Compromise Help
Submitting a request for an offer in compromise (OIC) can be a straining task as you have to prove that upon approval, this compromise fits certain criteria supporting both parties.
Two of the most important questions that the IRS will look into are:
- Does this offer make sense for our financial goals?
- What is preventing the filer from repaying us in full?
Simply put, the offer needs to make sense for both the IRS and the filer. Generally, they’ll want to understand what was inhibiting the filer from paying on time originally and must ensure that granting a compromise is within the current IRS tax policy.
The IRS is also more likely to accept an offer in compromise if the taxpayer is in otherwise good standing with the IRS. Filers who wish to request an offer in compromise will have a better chance if their tax returns from the last three years are up to date.
Why Does the IRS Allow Offers in Compromise?
The IRS knows that, in some cases, they may never see their money. Instead of spending valuable time chasing their money later, they’d oftentimes rather work with a taxpayer offering a sensible compromise.
The whole goal of an offer in compromise is to save the IRS time, provided they don’t have to waste resources going after money. The IRS doesn’t have time for a goose chase, let alone to go back and forth on every settlement offer for every taxpayer.
That is why the process for submitting an offer in compromise can be a tad trickier than simply presenting a suitable amount. The IRS expects all applicants for an offer in compromise to submit a proper application, pay a steep fee, and wait for the due processing time to be considered.
On top of the initial application process, the filer is also expected to put down 20% or immediately begin paying on the monthly installments — even before the application is approved. Paying on the monthly installments does not necessarily imply that the request will be approved, and if it isn’t, that potentially leaves a filer in a worse spot than they were before filing.
How Instant Tax Solutions Can Help You Propose the Best OIC With a High Likelihood of Approval
Instant Tax Solutions has a deeper understanding of what the IRS considers when reviewing an offer in compromise and can utilize those skills to help you approach your request confidently with the greatest chance of success. Working with a tax professional can help you move through said tax proceedings with the confidence of knowing that you’ve built a comprehensive approach to requesting relief.
We can help you document hardship or inability to pay in full, professionally express the unique details of your situation to the IRS in a way that hits pain points they want to hear and build a strategy for managing your taxes moving forward.
The average person will not have the same past experience dealing with the Internal Revenue Services OIC approval process, which can leave said filer in the dark if there are any hiccups along the way or if the IRS has further questions. Failure to provide a sound reason for a compromise is a common reason to see a request get trashed, but Internal Tax Services can help you better understand what the IRS is truly looking for in a successful request.
Instead of walking through your request blind, retain the services of a tax pro who can be there to support you from request preparation all the way to appeals if needed.
What Do Those Filing for a Boise OIC Agreement Need?
An offer in compromise can greatly impact the relationship a filer has with their tax bill. Even though this opportunity can be a money saver, not everyone will qualify.
An OIC is not easy to file for and comes with a hefty application fee, so it is critical that a taxpayer assess whether or not they even qualify for an offer in compromise before dedicating their time to the process.
In order to be considered for an OIC agreement, you must first meet the following eligibility criteria:
- You are current on filing your tax returns, and this year’s estimated payments
- You aren’t currently going through an open bankruptcy
- If you are applying past the filing due date for the current year, you have a valid extension
- If you are an employer, you have kept up with the most recent required tax deposit as well as the deposits for the last two quarters
If a filer fits the criteria for submitting an offer, they’ll be in charge of assuring that each required form and any attached documents are accounted for and that the non-refundable $205 application fee is promptly paid. On top of the application fee, a filer must be prepared to put 20% of their proposed compromise down or immediately begin their monthly installments while the application is pending.
Some applicants may qualify for low-income certification for their OIC, waiving the application and initial up-front fees.
Thankfully, all money invested into your request will go to your outstanding tax balance, even if your offer is denied. If your request is denied, you may end up losing valuable liquidity to end up in the same place you were before — with collections and accruing interest waving over your head.
It is important that you continue to make payments on your existing tax debt as if the agreement has been approved while it is still pending. The formalities go both ways, though, as the IRS will pause any collections while they are reviewing your request.
If you have been making payments as part of an installment agreement, an offer in compromise takes the driver’s seat, and you can stop paying on it. The IRS should respond with either an approval or denial in a timely manner, but if you do not receive an update after 2 years, the request is considered approved.
Proving Doubt as to Collectibility in Boise
While an OIC is under consideration, the IRS will weigh “doubt as to collectibility” to understand your financial relationship with your taxes. Doubt as to collectibility refers to the idea that you couldn’t reasonably pay back any more money than what is listed in the OIC.
You can also argue that paying back a larger sum will risk your financial stability and future ability to pay upcoming tax bills.
Factors the IRS considers include the applicant’s:
- Reasonable and necessary monthly expenses
- Asset value (including all property and accounts)
- Overall ability to pay
The IRS’s goal is to collect a practical sum from your unpaid balance, and when they’ve determined that taking your offer is more practical than dishing out resources on collecting later, it becomes a golden compromise for both parties.
Because our tax experts know what to look for, Instant Tax Services can help you present a strong argument for the reasoning behind your settlement offer. Without an experienced professional, it can be easier to get confused by the process or to propose an offer likely to be rejected, but we have a skilled team on standby to assist you.
Looking for an IRS Offer in Compromise Help? Reach Out to Instant Tax Services
An offer in compromise is a beneficial opportunity that many taxpayers can utilize to lessen the load of their outstanding tax balance. Unfortunately, it can be quite a challenge to maneuver through IRS forms, tips, and standard processes, making said application process more daunting to face.
A lot of weight hangs on forming a comprehensive offer in compromise, as filers commit time, effort, and a lot of money to the process upfront.
A skilled tax expert from Instant Tax Services can help you put together the most well-organized offer, maximizing your chances for success. Getting approved isn’t a guarantee, but with the knowledge and history of experienced tax professionals, you can move forward confidently, knowing that you’ve put your best foot forward with the IRS.
To talk more with a tax expert from Instant Tax Services, call (888) 485-8109 or contact us online to schedule a free, no-obligation consultation.