Do you owe the IRS money? Are you wondering about how to settle a tax debt?
For those who are not in the know, an IRS Offer in Comprise is a way that taxpayers who are behind on their tax payouts to the IRS can try to settle the debt without spending so much money. The issue is, of course, figuring out if you are eligible for the IRS Offer in Comprise, and how to go about getting it.
How to see if you are eligible
The IRS Offer in Comprise requires an application process. First, you must not be involved in an open bankruptcy proceeding. Next, the application fee is 150 dollars, which seems pretty steep for people who are trying to figure out a way to get out of debt. Fortunately, if you can get a Form 656-A, or the Income Certification for Offer in Compromise Application Fee and Payment form signed, the fee can be waived, if your income qualifies you for this.
After this, you must then make an offer to the IRS. The most common offers are to pay a lump sum of 20 percent of the amount that you owe to the IRS, or to try and negotiate a periodic payment program. Whichever one you choose, you’ll need to send all of this to the IRS and see if you qualify.
The unfortunate thing about it is that there’s no way of knowing if you qualify until after the IRS has looked at your case. The good news is that you’ll never know if you don’t try – so be sure to send in your application for the IRS Offer in Compromise today if you’re having trouble paying back Uncle Sam!