Offer-In-Compromise, Not the First Choice

        Our last post ended with the point that a Taxpayer must qualify in order to receive an Offer-In-Compromise from the IRS. Detailed and accurate records are required in this process. When analyzing the past tax returns and records, along with the help of a Qualified Tax Professional, they may find that the balance in question is lower than they thought. If that is the case, they should challenge the amount owed and may find a better solution.

          Apart from needing detailed records, Taxpayers must recognize that this program is not about negotiating with the IRS. There is simple math involved. If the formula works in your favor, you have a good chance of being able to pay the compromise debt amount. With that said, this amount must be paid. There is no ability to lower the debt any further. For those who have hit hard times, this may not be particularly helpful. We will discuss that in our next article.

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