IRS Offer In Compromise (OIC) Help
If you owe the Internal Revenue Service (IRS) more money than you have the ability to pay, you may qualify for a debt reduction solution known as an offer in compromise (OIC). This means the IRS allows you to repay less than what you actually owe. However, you must meet its stringent criteria in order to apply and to be accepted. When reviewing your application, the IRS looks at your current income, ability to pay, assets, and expenses. It also considers whether paying the full amount you owe would cause any excessive financial hardship.
Instead of offering a settlement on your own behalf, and risking denial, take advantage of our agency’s firsthand experience. Many of our employees worked as IRS agents before deciding to help the taxpayer instead of the government. When you hire our agency, you gain our unbeatable insider knowledge. We know how the system works from the inside, and our Enrolled Agents want to help you reach an agreement that is in your own best interest and gets the government off your back.
Get Advice to Ensure You’re Eligible for This Resolution
Keep in mind that this solution is not appropriate for everyone who owes delinquent taxes. Because the IRS wants to collect everything owed to it, the IRS makes you jump through many hoops to receive an offer in compromise, something not easily accomplished when facing the IRS alone. In most cases, the IRS doesn’t accept a proposal for less money unless it feels the amount is all that it can reasonably expect to collect. It’s important to ensure that you are eligible to apply for an offer in compromise before actually doing so. You cannot be in bankruptcy proceedings, and you must be current with all payment and filing requirements. Let an experienced Enrolled Agent help you decide whether or not this resolution is the best option for you.
Information Required to Apply for an Offer in Compromise
Along with basic information, such as your name, social security number, address, and total tax debt, the IRS requires you to provide significant information about your assets, income, and expenses.
Your assets may include:
- The current market value of your home
- Resale value of all personal vehicles
- Retirement savings accounts, such as a 401K or Individual Retirement Account
- Stocks and bonds
- Total balance of all bank accounts, such as checking, savings, money market, and certificate of deposit
When listing your wages, the IRS requires you to include every form of income. This includes, but is not limited to:
- Wages paid by an employer
- Self-employment income
- Business profit
- Rental income
- Child support
- Interest received from investments
The expenses section includes anything that you pay on a regular basis. Here are some examples:
- Mortgage or rent
- Health, auto, and life insurance
- Dependent care expenses so you can work
- Personal vehicle or public transportation costs
- Money you are court-ordered to pay to others, such as alimony or child support
- Federal, state, and local taxes
Let an Enrolled Agent Represent You
You are ready to submit IRS Form 656-B, the official application form for the Offer in Compromise, once you have gathered all of the above information. You may also need to include Form 433-A, Form 433-B, and/or other forms. The IRS requires a non-refundable processing fee of $186 unless you meet its Low-Income Certification guidelines.
While the IRS provides detailed instructions in Form 656-B, many taxpayers find them complex and overwhelming. As you can see, many steps and a lot of paperwork are involved when applying for an offer in compromise. An Enrolled Agent at Tax Resolution Services will ensure that you complete the paperwork correctly in addition to providing advice that increases your chances of acceptance. We also ensure the offer in compromise is the most appropriate solution for your unique situation.
As many of our agents are former IRS agents, we truly understand how the system works and will use that knowledge for your benefit. With offices throughout the eastern United States, we are prepared to help you set up a plan of action. Contact us today for a free consultation.