Many who are dealing with the burden of IRS back taxes are aware of the four most common IRS back tax relief methods:
- IRS Full Installment Loan
- IRS Partial Installment Loan
- Offer in Compromise
- And Currently not Collectible
While all of these are great methods to deal with back tax debt, an offer in compromise is the most sought after. To refresh your memory an offer in compromise allows the taxpayer to settle their debt for far less than they owe. Unfortunately, this relief method is one of the least awarded because it is only available to a small percentage of taxpayers.
The IRS carefully checks and considers the applicant’s unique facts and circumstance, regarding:
- Ability to Pay
- Income
- Expenses
- And Assets
Simply put, if the IRS believes you have the ability to repay the back taxes they will be less forgiving in granting an Offer in Compromise.
If you are currently seeking back tax relief the IRS has a pre-qualifier questionnaire (located here: http://irs.treasury.gov/oic_pre_qualifier/) to see if you qualify for an Offer in Compromise. If it seems that you could be a contender, you must submit:
- Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
- Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
- $186 application fee (non-refundable)
- And Initial payment (non-refundable) for each Form 656
Our qualified tax resolution professionals can assist in preparing this complex package for you and would be happy to assist your case in any other way possible. We are available 24/7 by phone or in-person to begin working on your case.