What is an Offer in Compromise?An offer in compromise is a solution from the IRS if you cannot payback the full amount of taxes you owe. The IRS normally takes these items into consideration:
- Ability to Pay
- Asset Equity
With periodic payments, you will send a payment in with your application and continue sending payments monthly while your application is in the approval process. Once it is accepted, you will continue making payments until the balance is satisfied. Both of these methods also require the application fee of $186.
What You Need to KnowBefore you send your offer in, make sure you are up to date on all your previous year taxes. Also, the IRS can keep any refunds plus interest up through the year the IRS accepts your offer. The IRS may still place a tax lien or levy against you, until the offer is stamped “pending”.
FOR AN OFFER IN COMPROMISE! FREE CONSULTATION!
In general this can be a good offer, if you can get the IRS to accept. There are also draw backs, which is normal for any type of payment plan. The best thing to do is weigh your options, and see which type of solution is best for you. You can always contact New York Tax Attorney Service at (347) 535-4017 and they will connect you to a tax consultant for a free consultation!