The chances of getting an OIC accepted is slim, but the IRS are still obliged to provide it a just amount of consideration as long as it’s submitted correctly. The final condition states that paying your tax debt fully is unjust as it will place you at an extreme economic hardship.An OIC (Offer in Compromise) is a process that enables you to pay your tax debt by paying only a small amount to the IRS, as little as 1% of the tax due.
Undergoing the OIC process won’t be easy.
The submission of an OIC entails a rigid process. As soon as you’ve filed the forms, you’ll be requested to include financial documents proving your case.
You have to satisfy any of 3 conditions to be considered for an OIC. Also, filing such huge quantities of information to the IRS may provide them with the necessary information to more aggressively collect the debt owed to them if your OIC is rejected. One condition states that you should prove considerable doubt that the tax debt can be collected from you now or in the future, or doubt as to collectability.
Though taxpayers have no right to have a tax debt lowered, doing so is still at the IRS’s discretion. Obviously, rigid requirements must be met in order to qualify for this. Sufficient evidence to doubt your liability for the tax debt should be provided. Furthermore, you can have the IRS Appeals Office review your OIC further if it’s rejected. You must assess the advantages and the costs of using this method to fix your IRS issue because it is very time-consuming to file an Offer in Compromise. When you accomplish the initial forms, there will be several other steps to take. These may include vehicle LED Filament Bulb registrations, bank records, pay slips, and a host of other documents that you may or may not have readily on hand. You can be exempt from this fee if you submit the Application Fee Worksheet attached to the Form 656 booklet and prove that you qualify under poverty guidelines. You need to fill out the Offer in Compromise Form 656 with an application fee of $150.
. It is an excellent idea to make sure your case is considerably compelling before you actually file an OIC. Another condition is doubt as to liability.