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Understanding the IRS Offer In Compromise Program

Fortunately, when you are no longer able to afford your income tax obligations, the IRS does offer potential options to help you reach an IRS Offer in Compromise settlement. Despite their reputation, the IRS is much more willing to negotiate IRS Offer in Compromise settlement than most people realize.

CURRENTLY, THE IRS IS APPROVING 42% OF ALL IRS OFFER IN COMPROMISE SUBMISSIONS.

THE IRS TAX ATTORNEY AT FLAT FEE TAX SERVICE, INC. CURRENTLY HAS A 95% IRS OFFER IN COMPROMISE SETTLEMENT APPROVAL RATE.

IRS Offer in Compromise Settlement

You will feel like you have been to moon and back when you receive your IRS settlement. Contact the best IRS help team at Flat Fee Tax Service, Inc. and find out if you are qualified and eligible to settle with the IRS for less.

The most useful tool the IRS offers to help you settle tax debt is known as the Offer In Compromise” (OIC) program.

The best IRS help team at Flat Fee Tax Service, Inc. details in this blog some of the most important things financially struggling or low income taxpayers should know about an IRS Offer in Compromise (OIC) program and how it works.

What is the IRS Offer in Compromise (Fresh Start Initiative) program?

An IRS Offer in Compromise is a form of income tax debt settlement, allowing you to pay the IRS far less than what you originally owed on your income taxes. The IRS Offer in Compromise program is meant to serve as tax relief for taxpayers, who are financially struggling and/or low income, who cannot afford their income tax bill, while also allowing the IRS to close impossible to collect tax debts.

Who is eligible and qualified for an IRS Offer in Compromise settlement?

In order for the IRS to accept your Offer in Compromise (OIC) settlement, one of three conditions must be fulfilled. The first is if there is reasonable and demonstrable doubt as to the legitimacy or accuracy of the tax liability. You cannot file for an IRS Offer in Compromise settlement based solely on this condition if you have had other opportunities to dispute the income tax liability but did not take action.

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An IRS Offer in Compromise may be accepted if there is doubt as to the collectability of the debt, meaning the tax debtor can prove that the IRS would not be able to actually collect the owed debt (such as if the debtor has no assets, etc.).

Finally, an IRS Offer in Compromise settlement may be accepted based on “Effective Tax Administration,” which means that neither side disputes the income tax liability or the collectability of the full debt, but it is clear that collecting the full debt would cause the taxpayer undue hardship. An IRS settlement is often times requested on the grounds of effective tax administration when the taxpayer is elderly or has a disability.

What does the IRS consider for a successful Offer in Compromise?

Under all circumstances the IRS will analyze the tax debtor’s income, expenses, asset equity, and ability to pay when determining whether or not to accept an Offer in Compromise settlement.

Submitting an IRS Offer in Compromise.

If you are an eligible and qualified taxpayer who is interested in receiving an IRS Offer in Compromise settlement on your income tax debt, you must submit the proper forms to request your settlement from the IRS. Your Tax Lawyer at Flat Fee Tax Service, Inc. will prepare every form you must submit and present those settlement forms in the best possible light so as to maximize your chances of having your IRS Offer in Compromise accepted.

You will need to include a $186 application fee and your initial payment from your requested Offer in Compromise payment plan (unless you meet specific low income certification guidelines). Depending on your IRS settlement that you are requesting, this could be a lump-sum payment of 20% of the total IRS Offer in Compromise settlement amount offered, or a periodic payment where you submit the initial installment of a proposed payment plan and you continue to adhere to that plan while the IRS considers the offer and after if it is accepted.

What happens when the IRS accepts or rejects your Offer in Compromise?

If your IRS Offer in Compromise is accepted, you will adhere to the settlement plan that you proposed. If your settlement offer is rejected, you have the opportunity to appeal within 30 days, otherwise the IRS will continue to pursue the collection of the full amount of your outstanding tax debt.

The Offer in Compromise can be your Fresh Start and lifeline when you are unable to fulfill your income tax obligations. If you are facing IRS tax debt problems, please contact the best IRS help team at Flat Fee Tax Service, Inc. to learn about your options with regard to achieving a successful IRS debt settlement, and to decide on your best course of action for overcoming your income tax debt.

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