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What"s an IRS OIC?
Of course, strict requirements should be met in order to qualify for this.
In America, other than paying it down, taxpayers have no right to get a tax debt lessened.
The government is entirely at its discretion regarding the reduction of anybody's tax bill.
Luckily, the IRS is obliged to give a just amount of consideration to OICs that are properly submitted in most cases.
There is a very slim chance of getting accepted.
Accepted OICs are fewer than half of the number submitted, but luckily, your options do not stop there.
If your submitted OIC is rejected, you then have the option to take it to the IRS Appeals Office for further review of your IRS problem.
Submitting an OIC is a considerable rigid process.
You should fill out the Offer in Compromise Form 656 with an application fee of $150.
You can be exempt from this fee if you file the Application Fee Worksheet attached to the Form 656 booklet and prove that you qualify under poverty guidelines.
The OIC process is not quick and easy.
There will be numerous steps to take once you complete the initial forms.
As soon as you've submitted the forms, you'll be requested to include financial documents proving your case.
These may include vehicle registrations, bank records, pay stubs, and a host of other documents that you may or may not have readily available.
You should determine the advantages and the costs of utilizing this method to fix your IRS problem because it is considerably time-consuming to file an Offer in Compromise.
Also, filing such huge quantities of information to the IRS may provide them with the necessary information to more aggressively collect the debt owed to them if your OIC is rejected.
It's an excellent idea to make sure your case is substantially compelling before you actually submit an OIC.
To qualify for OIC consideration, you have to meet any of three conditions.
One condition states that there should be doubt as to collectability, meaning there is substantial doubt that the IRS can collect the tax debt from you now or in the future.
Doubt as to liability is another condition.
Enough evidence to question your liability for the tax debt needs to be provided.
The final qualification states that paying your tax debt in full is unjust as it will place you at an extreme economic hardship.