Updated: Nov 26
I have been successful at negotiating an offer in compromise for many of my clients. Unpaid IRS debt can result in tax liens, poor credit rating, and wage and bank account levies. Settling your debt will give you a peace of mind so that you can live your best life! However, there are strict guidelines that warrant such an arrangement with the IRS which I will discuss below.
WHAT IS OFFER IN COMPROMISE?
The IRS will allow you to settle the debt for less than what you owe based on financial hardship. The IRS will consider the following:
Ability to Pay
Allowable Expenses according to the IRS National Standards
Compliant with all tax filings and payments while offer is under consideration
Based on these guidelines, the IRS will determine if they can reasonably expect payment over a certain amount of time. If not, you may qualify to settle your debt. I know it sounds weird, but the more you owe the better your chances of an offer in compromise. Use the https://irs.treasury.gov/oic_pre_qualifier/ to determine if you qualify.
If your offer in compromise is accepted-you must file and pay all current taxes timely for 5 years including estimated tax payments if applicable. Should you default, the offer will revert to the original amount owed.
Contact our office at 770-575-9737 for a free 30-minute consultation to determine if an offer in compromise is right for your situation.
End of Year Checklist
Business owners-check that you have completed W9s for your contractors
Order 1099s and W2s
Review your financial statements