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Owe Back Taxes? Make an Offer in Compromise

April 1st

Approximately 11 million Americans owe back taxes and continue accruing tax debt with the IRS. Regardless of the case of back taxes, the experience is a stressful one for many taxpayers, as dealing with the IRS can be a daunting process. Fortunately, there are many options available for taxpayers to seek relief and settle their debt. While some will try to eliminate their back taxes through an installment agreement, partial payment installment agreement, or bankruptcy, there’s an incredible option for those in dire financial circumstances.

Eliminate IRS Debt with an Offer in Compromise

An Offer in Compromise is an enormous discount for those who owe back taxes. It’s so large that some people only pay as little as 1% of their back taxes once approved. However, getting approved is a difficult process, as only 34% of applicants are accepted each year.

Qualifying for an Offer in Compromise to tackle IRS debt is typically reserved for those who have little to no wealth, assets, and income. To be considered you will be judged on your:

• Ability to pay
• Current income
• Expenses
• Total asset value

Though the Offer in Compromise program has expanded to help more Americans, the qualifying standards are still stringent. Proving an “economic hardship” or “inequitable” situation is what determines qualification. Tax attorneys and experts can help people applying to an Offer in Compromise. Since there are fees involved in the application process, ensure that you understand the process and seek all guidance needed. Unfortunately, all applications fees to the IRS are nonrefundable and the chances of being approved for an Offer in Compromise are slim. However, with the help of a professional tax attorney, eliminating back taxes and solving IRS debt problems is possible.

 
 
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