Yes, if your circumstances fit. The IRS has the authority to cancel all or part of your tax debt and reach an agreement with you for less than you owe. This is called a compromise offer or OCI. My Tax Settlement only suggests tax relief firms that offer affordable rates, offer payment options, and have tax attorneys on staff.
They may have equity in assets or future income that can pay their tax bills before the tax collection law expires. This amount is generally non-refundable, as is the 20 percent payment required for a lump sum cash offer. If you qualify for an OCI, the IRS will then determine how much it will accept from you to pay off the debt. In general, if you're not absolutely sure that the IRS will approve your OCI with the amount of the proposed offer, the ICO can be an expensive and unfeasible solution.
The small offer that the IRS accepts will depend on your financial situation, and you'll need to disclose it in great detail on Form 433-A (for salaried workers and the self-employed) or 433-B (for companies). Although it may be a difficult process, there are success stories of taxpayers reducing what they pay to the IRS after receiving the amount of the offer. You must provide detailed information about your financial situation on IRS Form 433-A (individuals) or Form 433-B (businesses), collection information statement. While tax relief companies are beneficial in taking their side when negotiating a bargaining amount with the IRS, their expenses may exceed the cost savings they generate by managing small clients with financial tax debts.
The OIC, out of doubt as to collectability, is for people who are unlikely to be able to pay the IRS before their collection statute expires (usually 10 years after the date the IRS evaluates the tax). Most people think that the IRS is haggling with taxpayers about how much it will take to settle the tax bill. If you offer to pay under a payment plan, your first payment should be the monthly amount suggested in your plan. In some cases, an OIC is returned to the taxpayer instead of refusing it, because the taxpayer did not submit the necessary information, filed for bankruptcy, did not include a required application fee or a non-refundable payment with the offer, failed to file the required tax returns, or has not paid tax obligations current at the time the IRS is considering the offer.
After determining the liquidation value of your cash flow, the IRS will proceed to a valuation of your assets and add it to the value of your cash flow. When taxpayers can't pay their taxes with their monthly assets and income, they may qualify for a transaction offer (OIC). A transaction offer (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the total amount owed.
Leave Reply