For many individuals who are struggling to pay off tax debt, an offer in compromise is an effective solution. Through an offer in compromise, taxpayers make an agreement with the IRS that they will pay a certain amount to settle their debt, even if it is not the full amount they owe. Many people who make this agreement end up paying less than 20% of their original debt. While the IRS will only consider an offer in compromise if you meet certain requirements, a tax professional from Solvent Tax Relief can help you learn more about the process of making an offer and whether or not you could qualify.
To set up a consultation and learn more about how our strategies can help you save money and settle your tax debt, contact Solvent Tax Relief for tax relief services at 800-981-2231 today.
What Is an Offer in Compromise?
If you have tax debt, it might be for more than you can currently afford to pay. If you are in this situation, our tax professionals might recommend that you make the IRS an offer to pay back just the amount that you can afford.
If you owe tens of thousands of dollars but do not currently have that much money, the IRS could garnish your paycheck, freeze your bank account, or even take your house. In order to keep that from happening, you can negotiate. The IRS typically wants to receive some form of payment rather than wait for you to have the amount of money you owe, so they might be willing to accept an offer to pay less than your full debt. If the IRS accepts your offer, once you pay the agreed-upon amount, your tax debt is considered to be paid in full, even if you paid only a fraction of the original amount.
To successfully negotiate an offer in compromise, you’ll benefit from having a tax professional on your side to help you with dealing with the IRS. They can file paperwork, research your options, and talk to the IRS on your behalf. At Solvent Tax Relief, our team is experienced in negotiating offers in compromise as well as other forms of tax resolution.
Is an Offer in Compromise Right for You?
In order to be eligible for an offer in compromise, you need to be able to demonstrate that you will not be able to pay the full amount owed or that paying your debt would result in economic hardship. A tax professional can help you gather the necessary information to prove this to the IRS. Before making an offer to the IRS, make sure that you have everything you need in order. Errors in filing can make you ineligible for an offer in compromise.
To check if an offer in compromise is right for you, consider the following criteria:
- The IRS might not have estimated your tax debt accurately
- Your assets and income combined amount to less than what you owe
- The debt is correct and your assets and income can cover it, but paying the debt would result in economic hardship
Your offer will not be considered if you are in bankruptcy proceedings, you have unfiled returns, or you have not made previous tax payments.
Contact Solvent Tax Relief for Help with Resolving Tax Problems
To learn more about how an offer in compromise can help you, reach out to our team of tax professionals. During an initial consultation, we will learn more about your specific situation and begin developing a strategy to save you money and settle your tax debt. If an offer in compromise seems like a possible solution due to your current financial situation, we will deal with the IRS on your behalf to negotiate for the best settlement.
If you have tax debt or other tax issues, reach out to Solvent Tax Relief today. Our tax attorneys and other tax professionals use a variety of strategies to get the best outcome for our clients. To learn more about an offer in compromise and other forms of tax resolution, contact us at 800-981-2231 today.