Too many people in Georgia and elsewhere feel a sense of shame about their financial circumstances. They may have fallen behind on bills, faced an emergency or endured another hardship that resulted in them suffering difficult financial times. For some this could mean that they have been unable to pay their taxes and that the IRS is taking collection steps. Rather than feel ashamed in this type of scenario, individuals may instead want to look for help, which could include an offer in compromise.
An offer in compromise is a settlement option that the IRS offers to qualifying individuals. In a broad sense, an OIC allows the qualifying individual to pay the IRS less than his or her total outstanding tax balance. This may seem appealing to parties who are having trouble keeping up with their tax situation and who are at risk of losing their assets due to wage garnishment, property liens or other action.
Of course, the IRS does not hand out OIC approvals on a whim. The agency will take the following areas into consideration before determining whether they should approve a taxpayer’s application for a settlement:
- The person’s income
- The person’s other financial obligations
- The person’s individual financial circumstances
- The person’s asset equity
- The person’s ability to pay the balance
There is an application when trying to receive an offer in compromise, and the process is not easy. Fortunately, if Georgia residents are struggling to get their tax matters in order, they could receive assistance from knowledgeable tax attorneys. These legal professionals could help with the application and assist taxpayers in understanding this and other tax relief options.