The IRS Offer in Compromise (OIC) forms require a lot of work to complete. Before you embark on this long application process, consult with a tax attorney to discuss whether your offer has a reasonable chance of being accepted. You’ll need to submit the following...
Month: February 2019
How to Avoid Tax Underpayments
Underpaying taxes throughout the year results in two problems once tax time comes around: Instead of getting a nice tax refund check, you owe the IRS money. You may be hit with underpayment penalties. Many people end up being charged underpayment penalties out of...
What to Do Once Your Offer in Compromise is Accepted
It can take a lot of effort to get an Offer in Compromise (OIC) accepted. Once that happens, you just want to make sure you comply with all the offer terms and don’t do anything that could cause your OIC to go into default. Make Your Payments Your OIC must be paid in...
Can You Pay an Offer in Compromise in Installments?
The IRS Offer in Compromise (OIC) program allows for either a lump-sum payment or periodic payment option. However, the lump sum option actually allows for a limited amount of periodic payments as well. Lump Sum vs. Periodic Payment Offers You must submit 20% of your...
How Long Do Installment Agreements Last?
IRS installment agreements can last anywhere from a few months to five years or more. The following factors can all influence the length of your repayment period: How much you owe the IRS Your ability to repay your tax debt When the collections statute expiration date...
How Does the IRS Determine Reasonable Collection Potential?
IRS Offers in Compromise are evaluated based on a taxpayer’s reasonable collection potential (RCP). If your offer is at least as much as your RCP, it should be accepted. RCP is basically the equity you have in your assets added to your monthly disposable income. For...
Should You Pay Off an IRS Installment Agreement Early?
You can choose to pay off your IRS installment agreement early or to pay more than the required monthly payment. You must pay at least the minimum monthly payment, but you are welcome to pay more than that amount. There are several factors to consider when deciding...
What to Do If You Owe the IRS $100,000 or More
IRS tax debt of $100,000 or more can cause major financial problems and stress. These situations require creative solutions that will vary depending on your income, assets, and other factors. IRS Actions You may have been receiving IRS notices for several years about...
What to Do If You Owe the IRS $50,000 or More
Owing over $50,000 in tax debt can result in IRS tax liens and levies. Your tax debt can make it hard to meet your other expenses, and you may be worried about all the IRS notices you’ve been receiving. Fortunately, you still have many tax resolution options if you...
What to Do If You Owe the IRS $25,000 or More
Some important IRS rules apply to tax debts of $25,000 or more. This balance includes the total amount of back taxes, interest, and penalties you owe to the IRS. You may qualify for certain IRS tax resolution options if you are able to pay your balance down to below...