What Is An Offer In Compromise, And How Can It Reduce My Tax Debt?

Are You Are Doubting If The Amount Of Taxes You Owe Is Correct?

If you believe the amount you owe to the IRS is wrong in any way, you should consider applying for OIC. You will need to show your reasoning as to why you think the amount owed is incorrect. This can help reduce the amount due which will help save you money. This route may not be for everyone. The taxpayer needs to be able to show that they had not had the opportunity to dispute a tax liability for this to be a reasoning for OIC. If the IRS can show that you have received proper notices and you decided to not act on them, you would not be qualified for an Offer in Compromise (OIC).

You Are Unable To Make The Full Payment In Full For Any Reason

If you are unable to make the payment in full for any reason, you may qualify for part of the amount owed to be forgiven. The IRS will use a formula to determine a taxpayers eligibility for debt forgiveness. This formula is based on your monthly disposable income, multiplied by a number of months, plus the taxpayers net realizable equity in assets. You can also show reasoning to showing the amount due is unfair or inequitable. Special circumstances will be determined and your total due has the potential to be reduced.

Claim Financial Hardship

If you do not meet the qualification with any of the above, the only other option you have is to show that in making the payment that is due, you would face economic hardship. The IRS will evaluate your circumstances and determine if they agree or approve that financial hardship would arise if one were to try and make the original payment due in full.

There Are A Few Things To Consider!

Prior to filing for an Offer in Compromise (OIC), there are a few things you should consider. You should make sure you have filed all required tax returns and made all required estimated payments that you are capable of making. It will also help if you have a valid extension for the return of the year you are applying for. If you are an employer, it is important to make sure you have made tax deposits for the current and past two quarters before you apply. If you meet any of these requirements above and have looked over the other qualifications listed, there may be a chance that the IRS will work with you to reduce and compromise on the amount that you owe in taxes. It is important to look at all of your payment options before making a decision to apply for the OIC.

How Do You Apply For An Offer in Compromise?

Applying for an Offer in Compromise (OIC) is quite simple. You should first find applications online and follow the step-by-step instructions on how to properly fill them out. You can find these applications on the IRS website. It is important to note that there is a $205 application fee that is non-refundable.

How Can I Use An Offer in Compromise To Reduce My Debt?

Once you apply for the OIC, the IRS will evaluate your financial situation and determine if they believe you can or cannot reasonably pay the full sum or if they would accept a lower total. To make this decision, they will look at your income, expenses, asset equity, and future earning potential. Based on their analysis, they will decide to accept a lower total and accept your application or deny your application. It is important to know that while the IRS may review your credit history during your application evaluation, your credit score will not be affected by your application.

How Can A Bankruptcy Attorney Help Me?

Not only are taxes confusing in general, but also trying to find a solution that brings down the amount of debt you owe can add to the frustration. Using a bankruptcy attorney can help you explore all of the opportunities you have to reduce the sum of debt that you owe. When you work with an attorney, they can help you evaluate if an Offer in Compromise (OIC) is the best route for resolving your tax debt. They will also be able to suggest if there are other solutions, such as bankruptcy, that might provide a more sustainable solution for your situation. They will also be able to assess if you would even be qualified for an Offer in Compromise (OIC) so you don’t have to pay the non-refundable application fee. A bankruptcy attorney will also be able to work with you on a negotiation with the IRS and help make a strong case for your Offer in Compromise (OIC) based on your current financial limitations. Your attorney will also be able to help protect your assets, such as your home, during an Offer in Compromise (OIC) or bankruptcy filing. Protecting your at-risk assets during this time will keep the IRS from deciding to include them in the evaluation of your application. They will know and understand the IRS’s criteria and will know how to improve your chances of having a successful settlement. Understanding and working with the government can be complex and confusing. The attorneys at Jump Legal are here to help make the process of reducing your debt less stressful. We will work with you on finding the best solution for your situation. You will be included and informed every step of the way so you can make the best-informed decisions for your life. We understand how stressful money planning can be, and we are here to help relieve some of that stress. Let us help you fill out the extensive paperwork and prepare you for the strict review process that comes with an Offer in Compromise (OIC) or a bankruptcy filing. We will help fill out any form that is needed and make sure they are filled out correctly and accurately. This will help avoid any delays or denials and help you quickly change your financial situation to give you a peace of mind. Our attorneys at Jump legal can’t wait to work with you! Give us a call today and let us get your financial situation in order.

Have All Of The Information Before Applying For Tax Dept Relief

It is important to consider all of your options prior to applying. There may be some solutions that will work better for your situation. If you are still unsure about how to proceed in reducing the amount of tax debt you owe, if is best to contact a bankruptcy attorney. They will be able to lead you in the right direction and show you all of the options you have to choose from. Contact Jump Legal today to get connected to an expert bankruptcy attorney. We have three convenient locations in Columbus, Ohio and are ready to either meet with you in person, or over the phone. We will help you get your finances back on track. We have helped thousands of individuals eliminate debt and we are ready to help you too. We will help answer any questions or concerns you may have. Let us show you all of the options you have to help reduce debt. Call Jump Legal today!