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Types of Offer In Compromise Settlements
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There are three types of offer in compromise settlements that you may be able to use to repay your tax debts.  The offer in compromise qualifications  are used to help the IRS determine which settlement type you will be granted.

Cash Offer

Once you determine the amount you are able to pay, you present a proposed  payment offer to the IRS. The cash offer is usually paid within five installments. To file a request for cash offer, you must file out tax Form 656 and pay a $150 application fee. 20 percent of the cash offer is also due upon filing the request.

Short Term Deferred Offer

A short term deferred offer allows for the debts to be repaid over a 24 month period. You will have 2 years to repay your tax debts, from the date the IRS receives the offer. The $150 application fee and Form 656 are due upon filing the offer.

Long Term Deferred Offer

For those that need more than 2 years to repay their tax debts, a long term deferred offer allows for more time. You will have the time from filing your offer until the date of your Collection Statute expires. The Collection Statue varies and is the most crucial piece of information you will need in order to determine whether you will successfully complete a long term deferred offer.  The $150 application fee and Form 656 are due upon filing the offer.

Each of these settlement types has many specific payment guidelines that can affect the amount of your offer. When handling tax debt, it is much easier to have a professional manage your case. Not only will the process be much easier for you, the chance that you obtain the best deal is maximized when you have legal representation. Our attorneys can help you repay your debts as quickly as possible and save you money.