You Will Need to Follow These Steps to Get an Offer in Compromise
Many people have been known to fail in paying their taxes. Do you know where to start if you are unable to pay your taxes on time? One of the best things to do is to get more information before you take any steps. You should consider finding the info that will add benefits to you. IRS is the one that will guide you through the process. here is what you should do when you want to apply for an offer in compromise.
You should know the first step to take when you are applying for an offer in compromise. You may apply and fail and you keep wondering what went wrong. There are these documents that you are required to fill out. You should know the forms that you are required to fill out for you to continue. The details there will show the money you get and if you have other debts. You should also make the application payment that will also be used as the waiver if you get qualified. It is also required of you to pay an amount that is 20% of the debt that you have. You should know that this payment is compulsory.
Another thing you should know is that you must be qualified to apply for an IRS offer in compromise. You will not be taken when you do not have these qualifications. Therefore, you should be sure that you will qualify before you fill out any forms. You should know that you should not be bankrupt, have a court-ordered tax debt, and also be behind on your taxes as you will not qualify. It would be best that you give out the forms you are asked for and also give out the details in full. They could also deny your application if you do not pay the required fee.
You will need to provide the details about your past present and future income when applying for an offer in compromise. How you afford to pay your bills will also matter and the type of car you drive. Once they find that you cannot give something equal to your retained cash flow then you will be disqualified. When you are accepted, you have two ways that you can pay your debt. You should know that there are various ways you can pay the debts either by installment in 2 years or five years.
There are many benefits you will get when you apply for an offer in compromise. One is that you will be at peace knowing that you will pay your debt at your own pace.