The IRS Offer to Compromise program may not be for everyone. It’s not a grand deal or a big giveaway. It’s not even a deal to settle for less. Here’s the rundown! It’s a program that Congress set up years ago to help taxpayers get a fresh start to get back into the game. These taxpayers were in over their heads because they may have forgotten to file their return/s. This type of behavior can pyramid and compound their tax problem rather quickly.
An offer to compromise can help determine how much you’re able to afford, no more and no less. The key to this offer is first knowing if you qualify. Don’t be fooled by a company offering you the promise of reducing your tax liabilities after a brief phone or office conversation. There are three types of offers to reduce tax liability, which may include a cash offer, short-term deferred offer, and a long-term deferred offer. Each plan involves working out the solution by using specific math formulas.
The safest thing to do, if you’re behind in paying your taxes, is to speak with a qualified tax attorney who can work to help ease your tax burden.