Are You Drowning in Tax Debt?

Discover How to Qualify for an IRS Offer in Compromise Today!  

If you’re tired of losing sleep over tax debt and watching interest and penalties stack up every month, I have good news for you. You may be able to settle your tax bill for far less than you owe – legally and permanently. 

I’m sure you’ve heard of the widely advertised  Offer in Compromise IRS program that could allow you to negotiate a deal to pay a fraction of your balance, freeing you from the crushing weight of tax debt once and for all. 

This isn’t a gimmick – it’s a real opportunity, straight from the IRS itself, for people just like you. But there’s a catch: you need to know exactly how to navigate their strict criteria, or they’ll turn you down flat. Keep reading to increase your odds of an approval:

But First, who am I? 

Im Chante’ Knowles and im an enrolled agent with the IRS. Ive been helping people fight back and stand up to the IRS for over 10 years. Ive helped hundreds of people process their Offer In Compromise Application.

What is an Offer in compromise (OIC)

The IRS Offer in Compromise (OIC) program is a tax relief option that allows eligible taxpayers to settle their tax debt for less than the full amount owed. It’s designed for taxpayers who can’t afford to pay their tax liabilities in full or for whom paying in full would cause significant financial hardship. Through this program, the IRS evaluates the taxpayer’s unique financial situation to determine if a reduced amount can be accepted as payment in full.

Here’s how it generally works:

Step 1. Determine if you’re eligible 

The IRS assesses your ability to pay by reviewing your income, expenses, and assets. If it’s determined that your financial situation would not allow full payment within a reasonable period, you may qualify for an OIC.

Step 2.  Submit the Forms 

Submit forms 656 (Offer in Compromise) along with a detailed financial disclosure, and form Form 433-A (for individuals) or Form 433-B (for businesses). Be prepared to include supporting documents that show income, expenses, and asset details.

Step 3. Choose Your Payment Plan

• • Lump Sum Cash Offer: You’ll pay 20% of the offer amount upfront and, if accepted, pays the remaining balance in five or less payments.

• • Periodic Payment Offer: You’ll pay the offer amount in monthly installments while the IRS reviews the application, continuing payments until the offer is accepted or rejected.

Step 4: Wait for Decision by IRS

The IRS reviews each offer based on the taxpayer’s financial situation. If the IRS believes your offer represents the most they can reasonably expect to collect from you within a certain period, they may accept it.

                                 

Applying for the Irs Offer In Compromise

If approved for the IRS Offer in Compromise program, you can stop the endless cycle of penalties and interest.

Imagine opening your mail and seeing an acceptance letter from the IRS saying they’ll settle your debt for a fraction of what you owe. This isn’t just wishful thinking – it’s a proven way for thousands of taxpayers each year to turn their financial lives around.

For taxpayers who qualify, the OIC program can offer significant relief, but the process can be detailed and time-consuming. You’ll benefit greatly from expert assistance to ensure accurate financial reporting and maximize the chances of acceptance.

In addition, there is a non refundable $205 application fee required, along with any initial payments toward the offer, which are generally non-refundable, unless you qualify for a low income waiver. 

If this seems daunting, don’t fret, I’m here to guide you through every step of the process, from gathering necessary documents to crafting a compelling case for your Offer in Compromise. 

How long is the Irs Offer In Compromise Process?

You may be wondering how long it takes to get an approval for an acceptance of your offer in compromise. The truth is the IRS doesn’t make it easy. They scrutinize every detail, from your income and expenses to every asset you own. One small mistake or a missed detail could get your application denied, leaving you right back where you started – with an unpayable tax burden looming over you. 

Hence, the application process typically takes anywhere from 6 to 9 months, however, they ask for an allowance of up to 24 months before it is automatically accepted. Do keep in mind that your debt continues to grow, so you can be right back at square one if your offer isnt accepted. 

That’s where we come in. Let us show you how to potentially reduce your tax debt and regain control over your financial future.

Determine If You’re Eligible for The IRS OIC Program? 

To qualify for the IRS Offer in Compromise, there are specific eligibility criteria you must meet, and understanding these details is crucial to crafting a successful application.

Therefore, here’s a summary of what you can expect:

1. Be compliant with all your tax filings

You must have filed all required tax returns for the past five years. If you haven’t, the IRS will reject your application. This means ensuring your tax filings are current, as the OIC process requires full compliance with tax laws.

2. Determine Your Ability to Pay

While there’s no minimum or maximum debt amount, the IRS is more likely to accept offers that are reasonable in relation to your ability to pay. The total amount of your tax debt should reflect a situation where paying in full would cause financial hardship.

3. Analyze your income, expenses, and assets

Your financials will be evaluated including your income, expenses, and assets to assess your financial situation. You’ll need to complete Form 433-A (for individuals) or Form 433-B (for businesses), detailing your monthly income, living expenses, and any assets you own. They will look closely at your ability to pay, so it’s essential to be accurate and thorough in your reporting.

4. Calculate Your Reasonable Collection Potential (RCP)

The IRS will calculate your RCP, which is essentially what they believe they can reasonably collect from you over a certain time frame (typically 12 months). Your offer must be at least equal to your RCP, which takes into account your disposable income and asset equity. 

5. Be Sure You Don’t Qualify for Other Programs that collect full Payment

Before you can qualify for an OIC, you should exhaust other payment options, such as installment agreements or other payment plans. If you can pay your tax debt in full through these methods, the IRS will likely deny your offer.

6. You Are Not In An Open Bankruptcy

You cannot be in bankruptcy. If you are currently in bankruptcy, you cannot apply for an OIC. You must wait until your bankruptcy case is resolved.

7. Stay Current on Your Withholdings or Estimated Tax Payment

If you are self-employed or have other income, you must continue making your estimated tax payments during the OIC application process. Failing to do so can jeopardize your application.

By demonstrating that you meet the above qualifications, you can increase your chances of a successful offer. However, the application process can be complex and riddled with challenges. Many taxpayers find themselves overwhelmed by the paperwork and the stringent requirements, which is why working with a knowledgeable professional can be invaluable. 

Together, we can navigate the intricacies of the IRS system and work toward securing the tax relief you deserve. Don’t let uncertainty hold you back – take that first step toward financial freedom today! 

What to do if you don’t qualify

If you find that you don’t qualify for the IRS Offer in Compromise program, don’t despair! There are still several options available to help you manage your tax debt and improve your financial situation. After you’ve ruled out doubt as to liability, and don’t qualify for the offer in compromise irs program,

Here are some alternative strategies to consider:

1. Installment Agreement

If you can’t pay your tax debt in full, you can set up an installment agreement with the IRS. This allows you to pay your debt in monthly installments over time. The terms can vary based on the amount owed and your ability to pay, but it’s a manageable way to reduce your debt gradually.

2. Currently Not Collectible (CNC) Status

If your financial situation is dire and you cannot afford to pay any part of your tax debt, you may qualify for Currently Not Collectible status. This means the IRS will temporarily suspend collection activities against you. You will still owe the debt, but they won’t pursue payment until your financial situation improves.

3. Penalty Abatement

If you’ve incurred penalties due to late payments or late filings, you might qualify for a penalty abatement. This can reduce or eliminate penalties assessed on your tax debt, which can significantly decrease the total amount you owe.

4. File for Bankruptcy

In extreme cases, filing for bankruptcy may be an option. Certain tax debts may be discharged through bankruptcy, but it’s essential to consult with a bankruptcy attorney to understand the implications and whether this route is right for you.

5. Financial Hardship Appeals

 If you’re facing genuine financial hardship, you can appeal to the IRS for relief. This may involve providing documentation of your financial situation and requesting a review of your account. The IRS may be willing to negotiate based on your circumstances.

Working with a tax professional can provide you with tailored strategies to deal with your tax debt. They can help you explore your options, understand your rights, and advocate on your behalf with the IRS.

6. Consider a Fresh Start Initiative

The IRS has initiatives that may help taxpayers who owe back taxes. This could include reduced penalties for first-time offenders or expanded criteria for the OIC program. 

7. Stay Compliant with Future Taxes

 No matter which route you choose, ensure you stay compliant with future tax obligations. This means filing and paying your taxes on time going forward, which will prevent further debt from accruing and help you regain control over your financial situation.

While not qualifying for the OIC program may feel discouraging, remember that there are multiple paths to resolve your tax issues. By taking proactive steps and seeking professional assistance, you can create a plan that works for your unique situation. 

Let’s discuss how we can navigate these options together and find a solution that leads to your financial relief. 

Together, we can navigate the intricacies of the IRS system and work toward securing the tax relief you deserve. Don’t let uncertainty hold you back – take that first step toward financial freedom today! Schedule your consultation, and let’s get started on your path to reducing your tax debt through the OIC program.

Schedule a consultation today, and take the first step toward regaining your financial freedom!