Most of the taxpayers that come into our Richardson TX tax office with IRS debt have heard the advertisements stating that taxpayers can settle their IRS debt for pennies on the dollar. This is done using the IRS’s Offer-In-Compromise program. Not everyone qualifies for an Offer-In-Compromise however. How can you determine if you’re a candidate?
While it’s not possible to give you a definite answer without knowing your exact situation, here are some of the factors that will determine if you are a candidate.
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You MUST be in tax compliance or get in tax compliance to successfully file an Offer-In-Compromise. What this means is:
- Your last six years of taxes have been filed, and
- You must be properly withheld or made Estimated tax payments for the current year.
- You are not in Bankruptcy Proceedings.
- You have the inability to pay in full within the remaining time that the IRS has to collect the tax debt.
- You do not have a substantial amount of equity in assets. The IRS will consider your assets in your ability to pay your IRS Debt.
- Your monthly income does not substantially exceed your allowable expenses permitted by IRS guidelines.
- You are ready and able to meet all of the terms outlined in your IRS agreement. Otherwise, you will default on the agreement.
You should educate on the process and requirements or seek professional guidance on the process before moving forward. Remember that two things occur with a rejected Offer-In-Compromise, first, the Statute of Limitations has been extended while the application is pending, and second, as part of the process, the taxpayers provides the IRS with a great deal of personal and financial information. It’s important to get it right.
Do you Need Help?
If you need help in negotiating an Offer-In-Compromise or any other issues related to IRS tax debt, we can help you. Please give me a call at (972) 821-1991 or at bob@jablonskyandassocates.com. To learn more about us, visit our website at https://jablonskyandassociates.com/.
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