If at all you are a taxpayer and you are faced with such financial hardships that make it harder for you to pay up your taxes as is due to the IRS, then chances are so high that you have already heard of the Offer-in-compromise plans or programs. Primarily, the offer-in-compromise program is one put in place by the IRS that affords such taxpayers to settle their owed taxes for less than the amount that they owe in actual sense, settling owed taxes for less. This is an open option that you may want to consider in the event that you are not in a position to pay what you owe or where paying it all will result in monetary privation. As a matter of fact, the OIC program from the IRS is one sure program that helps financially crippled taxpayers go about their owed taxes and return to compliance status with the IRS.
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. We would advise that before you consider submitting an application to be entered under the OIC plan, first take a look at the other available payment options and plans there are to help you clear your owed taxes with the IRS.
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. For those thinking of hiring the tax experts to help advise on these matters, it is important to make sure that you have looked at the qualifications of these professionals before getting their opinion. The following are some of the basics that you should identify of as you contemplate an offer-in-compromise application.
What you must do first is to ensure that you are indeed qualified. And for qualification, there are some things that the IRS considers. There are some unassuming errors that you may make in the process of application that may end up seeing your application thwarted. 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. In any case you happen to be in an insolvency proceeding, then you should be aware that you will not qualify for the program.