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Wednesday, 30 August 2006 |
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If you have a clear financial record and you have an income which is less than the poverty guidelines, it is very likely that your offer will be accepted by the IRS. However, in order to protect your offer you have to fulfill certain requirements in the next five years to come. You have to pay your taxes on time and if it’s that not possible immediately request an extension of deadline to avoid further problems. In addition to this you have to come up with 20 percent of the original amount you owe to the IRS as an up-front payment. The IRS charges a fee of $150 to process your offer in compromise.
You also need to know that OIC is the last option available to the taxpayer. If he can make use of the installments agreement he must do so. Otherwise if his OIC got rejected by the IRS, they might take serious actions to collect the original debt as well as penalties and interest. You definitely don’t want to let that happen to you. Thoroughly study your case and the current agreements IRS has to offer. If there is another option which is more suited to your situation then don’t consider going for an offer in compromise. |
