| An OIC (Offer in Compromise) is a process that | | | | be requested to include financial documents proving |
| enables you to pay your tax debt by paying just a | | | | your case. These may include vehicle registrations, |
| small amount to the IRS, as little as 1% of the tax due. | | | | bank records, pay stubs, and a host of other |
| Of course, strict requirements should be met in order | | | | documents that you may or may not have readily |
| to qualify for this. | | | | available. You should determine the advantages and |
| In America, other than paying it down, taxpayers have | | | | the costs of utilizing this method to fix your IRS |
| no right to get a tax debt lessened. The government is | | | | problem because it is considerably time-consuming to |
| entirely at its discretion regarding the reduction of | | | | file an Offer in Compromise. Also, filing such huge |
| anybody's tax bill. Luckily, the IRS is obliged to give a | | | | quantities of information to the IRS may provide them |
| just amount of consideration to OICs that are properly | | | | with the necessary information to more aggressively |
| submitted in most cases. There is a very slim chance | | | | collect the debt owed to them if your OIC is rejected. |
| of getting accepted. Accepted OICs are fewer than | | | | It's an excellent idea to make sure your case is |
| half of the number submitted, but luckily, your options | | | | substantially compelling before you actually submit an |
| do not stop there. If your submitted OIC is rejected, | | | | OIC. |
| you then have the option to take it to the IRS Appeals | | | | To qualify for OIC consideration, you have to meet |
| Office for further review of your IRS problem. | | | | any of three conditions. One condition states that there |
| Submitting an OIC is a considerable rigid process. You | | | | should be doubt as to collectability, meaning there is |
| should fill out the Offer in Compromise Form 656 with | | | | substantial doubt that the IRS can collect the tax debt |
| an application fee of $150. You can be exempt from | | | | from you now or in the future. Doubt as to liability is |
| this fee if you file the Application Fee Worksheet | | | | another condition. Enough evidence to question your |
| attached to the Form 656 booklet and prove that you | | | | liability for the tax debt needs to be provided. The final |
| qualify under poverty guidelines. | | | | qualification states that paying your tax debt in full is |
| The OIC process is not quick and easy. There will be | | | | unjust as it will place you at an extreme economic |
| numerous steps to take once you complete the initial | | | | hardship. |
| forms. As soon as you've submitted the forms, you'll | | | | |