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May 13, 2019
4 min read
Offer In Compromise | IRS Settlement | Settling for Less | Flat Fee Tax Service
Updated: Jul 5, 2019
Offer in Compromise - IRS Settlement - Settle With The IRS For Less
Losing your job,divorce, unemployment, unstable income, unexpected medical expenses, and other monthly bills combined with a poor financial decision can result in almost anyone ending up with a huge tax bill that cannot be paid in full.
Fortunately, those who want to pay their tax debt but cannot afford to do so now have several terrific potential solutions.
A major tax relief solution lies in opting for an IRS settlement offer known as an Offer in Compromise. An Offer in Compromise is one of the least used and misunderstood IRS tax relief options. A complete tax settlement can be the perfect means for immediate tax relief.
Flat Fee Tax Service, Inc. will always work closely with you so that you understand your tax situation and how to get out of your tax problem. An IRS Tax Attorney help you with everything you need to know about the Offer In Compromise tax relief option from “who qualifies for the program?” to the specifics of the IRS Offer in Compromise (#IRSOfferinCompromise) low income certification guidelines.
What is an IRS Offer in Compromise?
An Offer in Compromise or (OIC) is a tax relief settlement between a taxpayer and the IRS, where the IRS will accept much less than the entire tax debt you owe them.
If you qualify for this IRS settlement offer, much of your tax debt can be cleared. In 2017 alone, the IRS accepted nearly 25,000 offers which resulted in around $256 million in tax relief.
FLAT FEE TAX SERVICE, INC. CLIENTS HAVE A 96% IRS SETTLEMENT RECORD OF SUCCESS.
Don’t let anyone tell you that there’s no hope of getting tax relief if you can’t afford to pay taxes this year.
The DifferentTypes of Offers in Compromise
1. Lump Sum Offer – A Lump Sum Offer requires a taxpayer to pay the agreed amount they owe the IRS within five months from the date that the Offer in Compromise is approved. For the IRS to approve a lump sum offer, a taxpayer must make a 20% down payment when you submit the offer and your application fee to the IRS. This down payment is not refundable, so be sure to weigh your options well. There is no guarantee that the IRS will accept your offer in the first place. That’s why it is essential to consult a tax relief attorney who has extensive experience settling with the IRS. They will help you with the specifics of this kind of IRS settlement offer.
2. Periodic Payment Offer – This offer must be paid within 6 to 24 months. In addition to application fees, the first payment is the same 20% required for lump sum cash offers. This payment is also non-refundable.
Flat Fee Tax Service, Inc. offers a free consultation to make sure you don’t waste time and money submitting offers only to be rejected by the IRS for checking the wrong box or missing an item on one of several forms you need to fill out. Each rejected offer means 20% of your tax liability is taken out of your bank account.
During our consultation with you, we will know if you should do an Offer in Compromise (#taxsettlement) or not. Our consultations are always geared towards your personal tax relief needs. That way, you can choose the most suitable Offer in Compromise option without wasting money on rejected IRS settlement offers.
Our approach is educational and conversational with focused attention to the different challenges you’re facing with your tax debt problems. You shouldn’t need a law degree in order to understand what the IRS is doing to you and how to fix it.
WhoWillQualify for an Offer in Compromise?
An Offer in Compromise is not "a haggle". An Offer in Compromise is a complicated financial formula. The IRS considers a unique set of facts and circumstances to determine if you qualify for an OIC including:
a. Your overall ability to pay your taxes
b. Your gross monthly income
c. Your allowable monthly expenses
d. Your assets and equity
To qualify for an IRS settlement offer, the IRS must conclude that one of the following conditions exist:
1. You simply can’t afford to pay the full tax debt – The IRS will evaluate your situation and then accept that you can’t afford to pay the full tax debt before the statute of limitations ends. The Statute of Limitations is ten (10) years.
2. Financial hardship – Paying the full tax debt you owe would cause a financial hardship. In most cases, in order to qualify you must already be working full time (30 hours per week for at least the next 3 months), and still be unable to meet basic needs (allowable expenses) if you pay your full tax debt.
3. Doubt over the tax debt you owe – When there is a doubt over whether you really owe the IRS the tax, or there’s doubt about the accuracy of the amount owed, a settlement may be offered instead of the IRS using the time and money required for a close tax audit.
To be eligible for the above IRS settlement, taxpayers must be sure they have filed all the required tax returns on the appropriate forms, be up-to-date with estimated tax payments for business owners and self-employed individuals while keeping track of federal tax deposits for businesses with employees. The overwhelming amount of IRS required paperwork that must be precisely filled out will be enough to keep many Americans from reaching a successful settlement.
It really is essential to have an experienced tax lawyer who specializes in Offers in Compromise instead of trying to face the IRS’ bureaucratic nightmare by yourself.
When you are ready to submit your IRS settlement, Flat Fee Tax Service, Inc. has the Southern California Offer in Compromise attorneys who will help you resolve your tax issues and determine which tax settlement is right for you based on your finances.