Dealing with your tax debt can be stressful and difficult, and you may find that your financial struggles in this area carry over to other areas of your life as well. You know that you need a way out, but you are unsure of your options. Tax issues are common, and you are not alone if you do not think you can manage the outstanding balances you currently owe to the Internal Revenue Service.
Thankfully, there are options available to you that may provide you with some relief. One of these includes an offer in compromise. This particular relief option provides those with overwhelming tax debt the opportunity to settle their debt for less than what they actually owe. If you are facing overwhelming balances and are unsure of how you will ever get ahead, you may benefit from exploring this particular option.
Find out of you are eligible
An offer in compromise is not an option for every tax payer in Georgia who owes a significant amount of money to the IRS. Those who are eligible for an offer in compromise must be able to prove that he or she cannot pay or the debt, or that the act of paying the debt would cause significant financial hardship. The IRS considers multiple factors when deciding whether to accept an offer in compromise, including expenses, income, asset equity and more. You may be eligible to apply if you meet some or all of the following qualifications:
- You are not in an open bankruptcy proceeding.
- You filed all of the required tax returns and made any required payments.
- You are an employer that paid tax deposits for the previous two quarters and the current quarter.
- You have a valid extension for the current year’s return.
If your application receives approval, you can make the agreed upon payment amount in a lump sum or through payments. If rejected, you do have the option to appeal. Before you apply, you will benefit from seeking an understanding of requirements, application process and more.
Tax debt relief
Owing a significant amount of tax debt can be crippling, but there are options available to you. An assessment of your specific situation can help you understand how an offer in compromise could be the first step of getting rid of this financial burden and seeking a better future for yourself and your family.