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one. What is an Offer you in Compromise? An OIC is an IRS tax resolution plan that makes it possible for a taxpayer to settle their IRS back tax liability by paying much less than they owe. The quantity of a taxpayer's requirements to pay will fluctuate dependent on the taxpayer's unique monetary situation, as properly as his or her original liability sum. However, it is normally significantly significantly less than the tax credit card debt owed. The IRS will only take a taxpayer's OIC if it is equal to or higher than the reasonable assortment possible, which is the IRS's measurement of the taxpayer's capability to shell out their personal debt. Most taxpayer's will not qualify for this program. 2. What fees will I have to pay when I submit my OIC? You will need to have to pay out a $a hundred and fifty.00 application payment, as nicely as a verify or money buy for twenty% of the lump sump offer. 3. What will happen if I submit my offer without having the twenty% payment? If you submit your supply without having the twenty% payment, then the IRS will reject your provide as not processable, and will return your OIC and $one hundred fifty.00 application charge back again to you. 4. Is there any way to submit my provide with out the application payment or twenty% payment? Certainly, the IRS will allow you to submit an supply without the $a hundred and fifty.00 application fee or the twenty% payment if you meet the IRS's reduced-revenue taxpayer specifications. For more info about who qualifies as a low cash flow taxpayer, verify out this web page on the IRS' web site. five. Will an Offer in Compromise eliminate a wage garnishment or financial institution levy? Having an OIC accepted will not automatically eliminate a wage garnishment or financial institution levy. Nonetheless, an accepted OIC will resolve your tax liability with the IRS so that you can ask for to have your garnishment or levy produced. six. How lengthy does it get for the IRS to determine on an Offer you in Compromise? It can just take the IRS numerous months to critique your OIC. Furthermore, when the IRS performs an first review, they may have concerns or require clarification from you with regards to some of the representations that ended up made in the OIC. As this kind of, there is really no way to tell how long it will consider for the IRS to reply to your OIC. seven. What if my Offer you in Compromise is rejected? If your OIC is rejected, you nonetheless have other choices to resolve your tax credit card debt. You may qualify for placement into At present Not Collectible status, which would primarily end all IRS collection activity on your account until your economic circumstance alterations. Or, you may qualify for an Installment Arrangement that would enable you to pay off your tax financial debt via manageable monthly repayments.
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