An offer in compromise could be the right solution for you if you find yourself in a situation where you cannot manage to make your full tax payments and therefore cannot settle what you owe to the tax man. If settling your full tax bill is likely to cause you financial hardship, an offer in compromise could be the right solution for you.
Steps to Do an Offer In Compromise
When it comes to making an offer in compromise there are certain steps that you have to follow. First off you need to ensure you are eligible, and you can check your eligibility via the IRS website using their Offer in Compromise Pre-qualifier. If you are eligible you then need to follow the step by step instructions in order to submit your offer. This includes completing the relevant forms as instructed on the IRS website and providing all requested supporting documentation. You will also need to pay an application fee of $186, which you need to send along with all paperwork when you submit your offer. You will also need to decide how you want to pay the amount you are offering if accepted, such as making a lump sum payment or paying in installments.
It can be quite a daunting process to arrange and submit your offer in compromise, so you may want to consider using the services of a professional accountant. This could save you a lot of time and stress, but you should ensure you use an accountant that has experience in this field and can therefore get the best outcome for you with regards to your offer.