When it comes to tax debts, there are many people who find themselves in a situation where they do not have the money to pay off their debt in full or where paying off the debt would leave them facing hardship financially. This has become increasingly common in the challenging financial climate that has hit countries all around the world over recent years, and many have found that they have had to decide between setting debts such as taxes or being able to pay rent and bills to keep a roof over their heads.
What Factors Are Considered In an Offer In Compromise?
An offer in compromise is a solution that may be offered to some people in this situation, and this is where you can settle the debt with the tax office for less than the total amount that you owe. When you make an offer in compromise to the tax office they will assess it and determine whether this is likely to be the most they can collect from you realistically based on factors such as your income, outgoings and general financial situation.
If you want to consider using this as a solution to help with your tax liabilities, you must ensure that you are fully up to date with your tax filing. You must also not be going through bankruptcy. In order to get assistance when it comes to making an offer in compromise you can use the services of a specialist tax accountant, who can talk you through the process step by step.