Many people are struggling to pay their tax debt. The good news is that the IRS is willing to do everything to help taxpayers pay their debt in the most convenient way possible. That means helping taxpayers meet their tax obligations without adding burdens or stress to them. The IRS offers a fresh start program such as the offer in compromise.
What is the IRS fresh start program and how can you benefit from it? A perfect example is helping settle tax debt for less than the full amount, but various things must be considered such as the taxpayer’s income, ability to pay, asset equity, and expenses. The IRS approves your offer in compromise if the amount you offer is reasonable and within a reasonable period of time. Before you submit an offer in compromise, you need to carefully consider all your payment options. While it is a promising offer, it is not for everyone. That is why you need to check beforehand if you meet the necessary requirements.
Who Is Eligible?
You are eligible if you meet the following criteria:
- You have already filed the necessary tax returns and made the necessary estimated payments.
- You should not be in an open bankruptcy proceeding.
- You are an employer and have made tax deposits for the current and past two quarters before your application.
- You must have a valid extension for the current year’s return.
- If you have already applied and were not eligible at that time.
In the event that you already decided to apply and submitted your application, but for some reason the IRS can’t process your offer, the next step is to return the application. You can try your luck later on. It would be best if you were to consult a tax professional to know all your available options.