How the IRS Processes an Offer in Compromise


by Alexandra Tapp on January 29, 2019  0 Comment

How the IRS Processes an Offer in Compromise
When you apply for an offer in compromise, the IRS will calculate your "reasonable collection potential" to determine whether you qualify and how much of your tax debt you can afford to pay. During the offer in compromise approval process, the IRS reviews and verifies all your financial statements, assets, and expenses. You might need to provide the IRS with further documentation if anything has changed, is missing, or is out of date. Individuals who cannot pay the full amount of federal taxes they owe have several tax relief options they can qualify for. One of these is an offer in compromise. Before granting you leeway on your taxes, however, the Internal Revenue Service (IRS) will critically evaluate your ...

What to Expect: An Offer in Compromise


by Alexandra Tapp on January 29, 2019  0 Comment

What to Expect: An Offer in Compromise
Key Points:You might be able to have your tax debt reduced by applying for an offer in compromise. If you qualify for an offer in compromise, you must fill out and submit the appropriate forms and documents, plus the applicable fees. The IRS will notify you via letter whether your offer has been accepted or rejected and outline the necessary next steps. If you're struggling to pay the full amount of taxes you owe to the Internal Revenue Service (IRS), you might be able to "offer" to pay a lower sum. Eligible individuals can do so through an offer in compromise. Making this offer involves submitting the necessary forms and paperwork, then waiting for the IRS to either ...