Metro Area- Kansas city
Due to IRS problems such as overwhelming back tax debt, more and more taxpayers are trying to qualify for the offer in compromise (OIC) program of the IRS. Taxpayers are interested in this program because not only does it solve your tax problems and finding resolution to your tax problems but it also could reduce the total amount you need to pay the IRS.
OIC programs not only reduce the back taxes due but also reduce taxes, penalties and interests accrued on the taxes due. Due to the benefits it provides, thousands of taxpayers every year apply for the OIC program, but only a small portion of them are accepted by the IRS. In the next few years, the number of such applications will continue to increase and so it'll be more competitive to negotiate OIC for taxpayers.What do I have to do to be eligible for an Offer In Compromise?
You'll be eligible for an Offer In Compromise, if you have already filed your tax returns and cannot afford to pay the entire tax due. As a taxpayer, you will have to prove to the IRS that you cannot pay the taxes due to qualify for an Offer in Compromise. The OIC is a complicated process. It may take up to nine months and longer to get it approved by the IRS.
It is advisable to use the service of an experienced and expert tax relief provider such as an IRS licensed enrolled agent, tax attorney, or CPA for filing for an OIC. Any mistake in the process can increase to the possibility of rejection of your OIC.Can IRS tax debt be settled by offering a fraction of what is owed?
The Offer in Compromise program is a breeze for the taxpayers who owe more tax than they can afford to pay. The offer amount that you propose to pay should be equal to or greater than the taxpayer's reasonable collection potential (RCP). It is not a percentage of the debt or 10 cents on the dollar as advertised by many tax resolution services.
However, the OIC is not a program for every taxpayer with financial problems. You cannot use it as a means of avoiding paying taxes.
The reasonable collection potential (RCP) is a calculated total of the taxpayer's realizable value in real and personal assets and his/her future income.
You should not file an Offer In Compromise solely to hinder or delay collection actions by the IRS. If they find out, your OIC will be rejected without any other consideration and without the right to appeal against the rejection. It is better to let a tax relief expert handle the process on your behalf if you really want your proposed OIC to be accepted.
Get expert tax help today by calling Mike Habib, EA at 1-877-788-2937
Tax problem resolution, IRS tax help and tax relief services in Kansas City, Overland Park, Independence, Olathe, Lee's Summit, Shawnee, Blue Springs, Lenexa, Kansas State and Missouri State tax relief services