Debt can add complications to any Atlanta resident’s life. Some debt may be considered good, but other debt can leave individuals struggling and at risk of facing serious penalties. For example, tax debt can have far-reaching repercussions for individuals, and having the ability to pay off that debt is not always easy. Fortunately, an offer in compromise may be able to help qualifying parties.
An offer in compromise is much like it sounds. A taxpayer fills out Form 656 for an offer in compromise that allows him or her to propose a settlement amount to the IRS that is less than what is owed but is agreeable to both parties. The form will provide important information for the IRS to consider, like the amount of taxes owed, the person’s ability to pay and the offered settlement.
Of course, not everyone qualifies for such a compromise. Taxpayers may qualify if they will likely never be able to pay the full amount owed, if they believe that they do not hold responsibility for the outstanding balance or if paying the balance could result in serious economic hardship to the taxpayer. Proving any of these circumstances can be difficult, so it is wise to have the right help.
Dealing with the IRS in any capacity can be challenging, and it can seem anxiety inducing to request an offer in compromise. Luckily, Atlanta residents who are facing such difficult circumstances do not have to navigate this course of action alone. Experienced tax law attorneys could help interested parties better understand this option, their potential for qualifying and how to file.