Struggling Americans can legitimately save thousands of dollars on their tax bill – here’s how.
When it comes to paying their taxes, STRUGGLING taxpayers have an option.
The Internal Revenue Service (IRS) wants to protect taxpayers from being duped by explaining how to apply for an “offer in compromise.”
The Internal Revenue Service has issued a warning against hiring and paying unnecessary fees to companies that claim to be able to assist you when you may not be able to meet the IRS’s requirements.
The IRS even publishes a list of the “Dirty Dozen” of tax scammers on its website.
If people are concerned that their offer will not meet their payment requirements, the agency wants them to consider it as a compromise.
An offer in compromise (OIC) is an IRS program that allows qualified individuals with unpaid tax debts to negotiate a settlement amount that is less than the total owed in order to pay off their debt.
If you qualify, an OIC lets you settle your tax debt for a fraction of what you owe.
If you are unable to pay your full tax liability or if doing so would put you in financial hardship, it may be a viable option.
When making that determination, the IRS takes into account your unique set of facts and circumstances.
For a small group of taxpayers, the OIC program fulfills a critical function.
If you can’t afford to pay your full tax debt or if doing so would put you in financial hardship, an offer in compromise may be an option.
Your ability to pay, income, expenses, and asset equity are all factors that the IRS takes into account.
Before submitting a compromise offer, the agency advises that you look into all other payment options.
If you have not filed all required tax returns and made any required estimated payments, the IRS will return any newly filed offer in compromise application.
Any application fees that were included with the OIC will be returned as well.
Any initial payment required with the returned application will be deducted from your balance owing.
If there is a valid extension on file, this policy does not apply to current year tax returns.
If you have an open bankruptcy case, you will not be eligible.
This amount varies depending on how much you owe, how much you earn, and how much of your negotiated amount the IRS accepts, but it could be in the (dollar)1,000s.
According to the IRS, an offer in compromise is generally approved when the amount offered is the most the agency can expect to collect in a reasonable amount of time.
You must meet all of the offer conditions listed in Section 7 of Form 656, the monthly household income and expense information, including filing…
Infosurhoy’s most recent news in a nutshell.
wpcc-script async src=”//www.instagram.com/embed.js”]