| The OIC is an IRS program that allows people who | | | | will help you get the best chance possible in eliminating |
| owe the IRS money to not pay as much. Don't get | | | | your debt. |
| excited just yet, for let me tell you: its FAR from | | | | If you plan on hiring a "professional" to help you, be |
| instant, and far from free. | | | | careful of "wolves in sheep's clothing". Some |
| The IRS will accept and offer-in-compromise if you: | | | | internet-based companies won't really even do |
| 1. Can't pay them what you owe. | | | | anything. These companies are just out to make a |
| 2. Don't owe them what they say you do. (Just | | | | fast buck, and don't care if you get the tax relief. They |
| remember, the IRS is usually right!) | | | | just want your money. |
| Understandably, both of these situations have to be | | | | If you think you qualify for an OIC, find a trustworthy |
| proven. Its up to you to do it! It seems as if you need | | | | company that you can call up and discuss your |
| to get the proper form (find it below), fill it out, and | | | | situation. A good company will talk to you without |
| submit it before you have a chance of getting this | | | | demanding payment. After you get a little more |
| offer. But hold on! there are a few things you should | | | | background info on the subject, you can either hire |
| know! | | | | someone to help you, or file the OIC yourself. |
| 1. Only about 20% of submissions go through. | | | | There is one more thing that people use the OIC for. |
| 2. Submitting isn't free (there is a $150 application fee, | | | | When someone files and Offer-in-Compromise, the |
| and a 20% down payment*). | | | | IRS takes about a month to look over it, so filing one, |
| 3. You need 3 months of documentation. I assume this | | | | even if it's not possible to bargain with the IRS, could |
| is to prove your inability to pay, or your innocence. | | | | delay your payment for a month. You really should find |
| Before you're discouraged...there are people that have | | | | more information on the subject before you attempt |
| paid "pennies on the dollar" and eliminated their tax | | | | this. |
| debt. Its just not all that common, so to have the best | | | | *Down payment is 20% or the money you tell the IRS |
| chance possible, you should really consult a | | | | you want them to settle for. |
| professional that frequently deals with the IRS. They | | | | |