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An offer in compromise could help settle tax debt

On Behalf of | Nov 5, 2020 | Tax Debt

Staying on top of finances is not always easy, especially if an unexpected financial burden hits. For some Atlanta residents, this burden could come in the form of owing a considerable amount of taxes to the Internal Revenue Service. This scenario can feel like a tremendous weight on people’s shoulders if they do not have the ability to pay what they owe. However, before feeling crushed by the debt, look into options like an offer in compromise.

An offer in compromise could help qualifying taxpayers essentially settle their debt with the IRS for a lower amount than what they initially owed. This option does not work for everyone, especially if the IRS believes that the taxpayer can pay the debt off in a single payment or over time through a repayment plan. If a person is interested in pursuing an OIC, an application must be submitted, and the IRS must approve it.

To determine whether an OIC could work for a particular person’s situation, the IRS will review the application and, if the application is approved, use a specific formula to determine the amount that may suit the circumstances. It is crucial that taxpayers provide the correct information in their OIC application. If they do not, the IRS could reject the application for those mistakes.

Any dealings with the IRS can have complications, which is why many Atlanta residents choose to get help. It is important to be wary about the type of help and from where that assistance comes as too many unscrupulous individuals and companies try to scam vulnerable individuals just trying to get their financial matters in order. Fortunately, tax law attorneys are available to provide reliable and trustworthy assistance to interested parties hoping to learn more about the offer in compromise option.