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Someone must have already hinted to you the idea of the offer-in-compromise plans if at all you are a tax payer who happens to be facing some financial difficulties as such making it difficult for you to pay your taxes as owed to the IRS. By and large, the OIC program allows you as a taxpayer to pay your tax debt for less than what is actually due from you to the authorities. It is an option that is available to you if you cannot pay your tax debt in full or if doing so will result in some monetary adversity for you. By and large, this is a program that has been so helpful for taxpayers who are facing such financial difficulties sort out their issues with the IRS and get back to compliance.
Going forward, it is important to note the fact that the IRS will approve an application for admission into the OIC program only where the amount offered is one that they can reasonably expect to collect with the given time period. We would advise that before you consider submitting an application to be entered under the OIC plan, first take a look at the other available payment options and plans there are to help you clear your owed taxes with the IRS.
What you should know and appreciate going forward is that in as much as it is an open program, the offer-in-compromise program is not for all and sundry anyway. Consult with your tax consultant professional so as to have them advise you on which way would be the best way forward, whether or not the OIC program would make for the best way out or if you can go for another alternative plan to help settle your owed taxes to the IRS. If at all you are going to hire a tax professional for this, then you should be very careful with the one you choose and ensure that they are duly qualified. The following are some of the basics that you should identify of as you contemplate an offer-in-compromise application.
The first thing that you are to do as you consider the offer-in-compromise plans for your needs is to make sure that you are qualified. In so far as qualification and eligibility goes, be informed of the fact that there is a criteria that the IRS takes into consideration. As it often is, an applicant may end up making some little blunders as they submit their application for the OIC which may cost them their application. For instance, the IRS will reject any application made without making a submission of your tax returns and failing to state the estimated required payments. For those who may be in an open insolvency case, then stand aware that this technically disqualifies you.