By greenberg law group, p.a.
Keep reading to learn about Offers in Compromise.
When you cannot pay your tax debt in full, the IRS offers several options to help ease the financial burden. One of those options is an Offer in Compromise (OIC).
Understanding this option can help anyone struggling with tax debt as it provides a potential pathway to financial relief and can prevent more severe consequences.
An Offer in Compromise is a program provided by the IRS that allows taxpayers to pay their tax debt for less than the total amount owed. This option is designed to help those facing financial hardship manage their tax debt and regain financial stability.
There are specific criteria and eligibility requirements for an OIC:
1. Ability to Pay
2. Income
3. Expenses
4. Asset Equity
The primary advantage is settling your tax debt for less than the full amount owed, including penalties and interest. This can help individuals avoid more aggressive collection actions by the IRS, such as bank levies, property seizures, and wage garnishments.
These actions will be halted once a deal is in place with the IRS and the agreed amount is paid. Reducing your tax debt can provide a fresh start and an effective resolution to your tax issues with the IRS.
If you meet all the criteria and requirements mentioned earlier, you can start applying for an Offer in Compromise that suits your needs.
There are various types of OICs and a few important steps to follow. For more information, please read our blog.