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Offer in Compromise – Michigan/IRS Tax Settlement Services

United States | General information | Popularity - 0/10
An Offer in Compromise allows taxpayers to negotiate and settle their tax debt with the IRS for less than they owe for a welcome fresh start. For qualifying taxpayers, an Offer in Compromise allows a unique opportunity for taxpayers to compromise their tax debt and may significantly reduce the amount of tax that the taxpayer ends up paying the IRS.
Although many people are skeptical that the IRS will actually reduce their tax debt, in many situations, it is more economical for the IRS to settle out a tax debt with someone who cannot full pay than to keep spending time, money, and resources attempting to collect the debt. Tax Debt Relief Service Saginaw MI
If you owe taxes that you are not able to pay the IRS, you absolutely need to speak with Austin & Larson Tax Resolution, an experienced Michigan team of tax debt relief professionals, to determine if you would qualify for this settlement program. Although not all taxpayers will qualify, for those that do, this tax debt relief program could significantly reduce your taxes owed. To find out if you qualify, we provide valuable Offer in Compromise help that Michigan taxpayers can trust. Call us now at 1-866-668-2953 for immediate tax debt help.
EXPANSION OF OFFER IN COMPROMISE UNDER IRS FRESH START PROGRAM
In 2012, the IRS announced the Fresh Start Program. One of the major changes under the Fresh Start Program was to expand the Offer in Compromise program, making it easier to taxpayers to qualify for an Offer in Compromise.
The Fresh Start Program revised the calculation for taxpayer’s future income. It allows taxpayers to include student loan payments and payments on delinquent state and local tax debt as necessary expenses. It also increased the allowable living expenses that a taxpayer could claim.
Because of these IRS changes, many taxpayers that previously did not qualify for an Offer now do. However, just because the Offer program was expanded to allow more taxpayers to qualify, it does not mean it will remain that way. It also does not mean that successfully negotiating an Offer in Compromise is simple. It is important to have a qualified representative to represent you through the Offer process. If you owe back taxes, it is important to find out if you qualify for an Offer in Compromise under the current program. If you do, you need to act quickly to make sure that your Offer is accepted under the current rules.
FORMS AND IRS OFFER IN COMPROMISE CALCULATOR
There are numerous Offer In Compromise forms that need to be completed and submitted for an Offer in Compromise offer that will be considered to be valid by the IRS. For an individual filing an Offer in Compromise, there are two main forms that need to be completed. The first form that needs to be filed is the form 656. This is the form that requests the Offer in Compromise. It identifies the taxpayer requesting the Offer and the tax periods to be included in the Offer. It also states the proposed Offer amount and the payment terms that the taxpayer is requesting. This form is then signed by the taxpayer.
The second form that must be attached to form 656 for an individual offer is form 433-A. This form lists out all of the asset information of the taxpayer and their monthly income and expenses. The IRS uses this form and the supporting documentation to analyze the taxpayer’s financial situation. This analysis, along with a review of the taxpayer’s total facts and circumstances, is then used to determine whether the taxpayer qualifies for an Offer in Compromise. Back Tax Help MI
The IRS has an Offer in Compromise calculator on their website to assist taxpayers in determining if they qualify for an Offer in Compromise. Although this is a helpful tool, it does not replace the advice and expertise of a qualified tax debt expert. There are many factors that this calculator does not address. Its approval does not mean that your Offer will be accepted. In the same regard, just because the calculator states you will not qualify does not mean that you do not. It is best to speak with a representative that has experience successfully filing and negotiating Offers in Compromises with the IRS.
OFFER IN COMPROMISE FOR BUSINESS TAXES
Through the IRS Offer in Compromise, businesses can also compromise their tax debt. IRS Form 656 Section 2 has a section to list business tax periods. This section is for taxes owed by a corporation, partnership, or an LLC classified as a corporation. A sole proprietor would include any business taxes under Section 1. A separate Offer is required for a business and cannot be included on an Offer for an individual. The business must also pay its own filing fee and 20% down. The business then needs to complete form 433-B (OIC). Much like the 433-A (OIC) for individuals, form 433-B (OIC) requires information on the business’ income, expenses, and assets. This information will be used by the IRS to determine whether the business qualifies for an Offer in Compromise.
OFFER IN COMPROMISE LOW INCOME CERTIFICATION GUIDELINES
Taxpayers filing an Offer in Compromise need to send checks with their Offer for the $186.00 filing fee and 20% of their Offer amount. However, low-income taxpayers may qualify for a waiver of the filing fee. They will also not be required to send in the initial payment of 20% down with their Offer. The low-income certification is based on the gross monthly household income of the taxpayer and their family size. Businesses do not qualify for the low-income certification and must send in the required checks with their Offer in Compromise.
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