An offer in compromise is a file of paperwork that you submit to the IRS, providing proof that your assessed taxes are more than you can afford to pay within a reasonable amount of time. It is a very important item, because it can get your taxes reduced and help you come up with a payment plan to be capable of paying whatever you can afford.
Who Should File an Offer in Compromise?
Anyone who owes more in taxes than they think they can afford should seek professional legal help-tax attorneys exist for just such a purpose. They can help you determine if you meet the requirements to be able to file an offer in compromise, and, once that is assured, they can guide you through the steps of compiling a complete offer that is likely to be accepted by the IRS. If the original offer in compromise is not accepted, they can help draft an appeal of the rejection, finding the applicable laws to cite, stating your objections to the rejection. This can be invaluable in cases where the taxes are high enough to potentially cause bankruptcy.
What are the Requirements of an Offer?
The IRS has a blanket set of statements about the details of offers in compromise, but the different states do have some jurisdiction over who can and cannot file one. Fox example, tax attorneys in Utah have some of the most lenient requirements in the United States-their clients must simply prove that they cannot pay the assessed amount of their taxes within a reasonable time frame. This has a massive amount of leeway, as there is no formal legal definition of reasonable, nor is there a set percentage of the amount of taxes that you must attempt to repay. There are only vague guidelines.
The Process of Filing an Offer in Compromise
To file the offer, you must provide proof that your wages and assets are not sufficient to pay back the total of your originally assessed taxes. This requires that several complete, perfect forms be submitted to the IRS, which is where a good tax attorney comes in very handy. They can help you ensure that you have all of the needed information, that all of the forms are completely filled out, and they can advise you on the reasonableness of your offer in compromise. They can also help you determine if you’re better off trying to repay the reduces amount of taxes as a lump sum or in smaller regular payments.read her latest post at http://www.freedomtaxrelief.com/.
Offers in compromise are extremely valuable sets of paperwork, but they can be extremely complicated and stressful to successfully complete with enough time to return them to the IRS for evaluation before actual payment of the taxes becomes due. In cases where an offer in compromise is a necessity, a professional tax attorney to help you navigate the ins and outs of tax laws can be an invaluable assistant, and can be the difference between an accepted offer and one that is rejected and must be appealed.follow this link. Good Luck!