TAX COLLECTIONS
IRS Offer in Compromise
Get Help with Your IRS Offer in Compromise
Looking into an IRS Offer in Compromise? Loss of a job, fluctuating income, overwhelming medical bills, and other unexpected monthly expenses can result in a huge tax obligation that you can’t pay in full.
Luckily, those who want to pay their taxes but cannot afford a lump sum now have several potential solutions.
For example, you might qualify for one of the major tax relief solutions, an IRS settlement offer known as an Offer in Compromise. An Offer in Compromise is one of the most underused and misunderstood IRS tax relief options, but it can be the perfect solution for tax relief.
At Delia Law, we work closely with you so that you understand your tax situation and how to resolve it. We’ll provide all of the Offer In Compromise help you need, starting with whether you qualify for the program, to the specifics of the low-income certification guidelines.
What is an IRS Offer in Compromise?
An Offer in Compromise or IRS Offer in Compromise is a tax relief settlement between a taxpayer and the IRS, where the IRS typically accepts less than the entire tax debt owed.
If you qualify for this IRS settlement offer, much of your tax debt can be cleared. In 2023 alone, taxpayers submitted 30,163 offers in compromise to resolve their tax liabilities for less than the full amount owed. Of these, the IRS approved 12,711 offers, totaling $214.5 million in tax relief!
Types: IRS Offer in Compromise
- Lump-Sum Offer — This requires a taxpayer to pay an agreed reduced amount to the IRS within five or fewer months from the date that the offer is approved. You must pay a 20% down payment when you submit the offer and an application fee to the IRS, unless you qualify for a hardship. An offer in compromise can be quite complex so it is essential to receive Offer in Compromise help to complete the specifics of this offer.
- Periodic Payment Offer — This offer must be paid within 6 to 24 months. In addition to application fees, the first payment is the same 20% down payment required for lump sum cash offers.
Delia Law offers free consultations to make sure you don’t waste time and money submitting offers that are rejected by the IRS because you checked the wrong box or missed an item on one of the many forms.
Our consultations are always geared towards your personal tax relief needs. With the right information, you can choose the most suitable Offer in Compromise option without wasting money on rejected IRS settlement offers.
Our approach is educational and conversational with keen attention to the different challenges you’re facing with your tax debt problems.
Qualifications for an Offer in Compromise
Generally, the IRS considers your unique set of facts and circumstances to determine if you qualify including:
- Your overall ability to pay your taxes
- Your monthly income
- Your monthly expenses
- Your assets and equity
To qualify for an IRS settlement offer, the IRS must conclude that one of the following conditions exist:
- You can’t afford to pay the full amount — The IRS will evaluate your situation and determine if you can’t afford to pay the full tax debt before the statute of limitations ends – generally 10 years.
- Economic hardship — Paying your full tax debt would cause you economic hardship. In most cases, you must already be working full time (30 hours per week for at least the next 3 months), and still be unable to meet basic needs if you pay your full tax debt.
- Doubt over the tax debt you owe — When there’s doubt over whether you actually owe the tax, or there’s doubt about the accuracy of the amount owed, the IRS may offer a settlement instead of using the time and money required for a close tax audit.
To be eligible for the above IRS settlement offers, taxpayers must be sure they have filed all the required tax returns on the appropriate forms and be up-to-date with estimated tax payments for business owners and self-employed individuals while keeping track of federal tax deposits for businesses with employees. The overwhelming amount of paperwork that must be completed with pin-point precision is enough to keep many Americans from settling with the IRS.
That’s why it’s essential to get qualified help for your Offer in Compromise instead of trying to face the IRS’s bureaucratic nightmare by yourself.
Dawn Delia, Esq. — renowned IRS Offer in Compromise attorney in San Diego— can help you resolve your tax issues and determine which program is right for you based on your financial situation.
Please contact us for a complimentary consultation. You call also fill out our client form request.
