Paying back money owed to the IRS can seem like an unachievable goal. If you are in this position, you may be eligible for an Offer in Compromise, which enables you to pay back some of your tax burden. If you are curious whether this option is right for you, The Bronson Law Firm PC is ready to help. Founded in 1978, this practice helps clients in Plano, TX, face their tax issues head on thanks to their expansive knowledge of financial law.
What Is An Offer In Compromise?
In the event it is all but impossible for you to pay off your tax debt, the IRS provides the option of an Offer in Compromise. This enables you to pay less than the actual amount owed in light of severe financial instability. Debt owed to the IRS can be compounded by things like interest rates and penalties, which will make your actual tax burden far greater than the amount you actually owe.
Once you’ve requested an Offer in Compromise, all actions against you must cease. This includes levies on money in your possession, whether it’s the wages you earn or any assets you own. However, you must meet certain criteria in order to be eligible.
Do You Qualify?
There are typically three considerations used to determine whether you qualify. If you believe the amount you owe, according to the IRS, was arrived at inaccurately, you can claim Doubt to Liability. This can be difficult to establish, however, which is why many taxpayers opt for one of the two more common options.
If you would potentially face economic hardship upon the repayment of the total amount of your tax bill, you are eligible for an Offer in Compromise. If it seems unlikely the IRS will be able to collect the full amount of your bill (either at the present date or in the future), you will also qualify. Upon the completion and filing of the appropriate forms, the IRS will review your case.
If you have tax questions that just can’t wait, contact The Bronson Law Firm PC today. Schedule an initial consultation with an Addison tax attorney by calling (972) 770-2660.