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Taxpayers who are facing financial hardships and as such are unable to pay your taxes to the IRS, then you must have already been told of the offer-in-compromise plans there are with the IRS. Generally, the offer-in-compromise program is one established by the IRS that allows such strained taxpayers an opportunity to settle their tax debts for less than what they actually owe to the IRS. This is actually a legitimate route you may take to be clear with the IRS if you happen to be unable to pay your taxes in full or if so doing is going to create you financial suffering. By and large, this is a program that has been so helpful for taxpayers who are facing such financial difficulties sort out their issues with the IRS and get back to compliance.
One thing that you should know of as you think of making an application for an offer-in-compromise settlement is that the IRS will approve an application for the program if at all the amount offered by the applicant is one that they expect to collect within a reasonable period of time. It would be wise of you to first take a look at all the other available clearance procedures before you finally make an application for an OIC admission.
We must acknowledge this fact going forward that in as much as the OIC program is open to taxpayers with such a tax burden, it is not just meant for anyone. Your tax consultant should advise you on the best way forward for you to deal with your back taxes and see if at all the offer-in-compromise would be the best for you. In case you are thinking of getting the opinion of the tax experts to help you with these matters, you should be very careful with the choice you make and see to it that they are indeed qualified tax professionals. Hereunder is a look at some of the basics you should be aware of as you think of going for an OIC application for your need to get clean with the IRS.
First, you should see to it that you are entitled. And for qualification, there are some things that the IRS considers. There are some mistakes that you may make during your application that may see your application rejected. A good example is such as where you happen to submit your application for the offer in compromise program but you don’t furnish the IRS with your tax returns and as well fail to make any required estimates of payments. If you are in a liquidation case, then note by this alone, you will not be as eligible as top qualify for the program.