Offer In Compromise
An agreement or negotiated settlement between a taxpayer and the IRS that resolves the taxpayer's tax debt is called an Offer In Compromise. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances. The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the Government.
A tax debt can be legally compromised for one of the following reasons:
Doubt as to Liability - Doubt exists that the assessed tax is correct.
Doubt as to Collectibility - Doubt exists that you could ever pay the full amount of tax owed.
Effective Tax Administration - There is no doubt the tax is correct, and no doubt that the amount owed could be collected, but an exceptional circumstance exists that allows the IRS to consider a taxpayer's OIC. To be eligible for a compromise on this basis, the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable. - Source IRS
Qualifying for this very popular program is relatively straightforward when there is a financial hardship and the amount owed exceeds one's ability to realistically pay off the debt in five years, the IRS is willing to settle for a mere fraction of what is owed. It's important to note that each case is scrutinized to the dollar and any small miscalculation can cause the amount offered to skyrocket or worse, be rejected. Thankfully, the experts at 411Tax Relief knows all of the intricacies of this program and will work on your behalf to calculate the lowest possible amount the IRS will accept before submitting a request.
To see if you qualify for this very popular program consult with 411Tax Relief.
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