When you are sinking
under the burden of accumulated tax debts, you should consult a
qualified tax professional to ease you out of your difficult
circumstances. Of the different ways to settle your debts to the IRS
one major way is to submit for Offer in Compromise. There are five
ways to circumvent your tax debts of which filing for bankruptcy
under Chapter 7 or Chapter 13 are an option, but Offer in Compromise
can also be availed if the taxpayer is able to establish any of the
following conditions to qualify for this relief measure:
Doubt as to
Collectability: if the taxpayer can prove that he or she is cannot
meet the debts due to their financial incapacity to do so, the IRS
can maintain the discretion to let the debtor pay a reduced amount.
Doubt as to
Liability: If the taxpayer has doubts to the amount that is owed and
penalties that may be levied, he or she can counter the claim. With
the help of tax attorneys they can show that the liability is
erroneous and submit an offer in compromise.
Effective Tax
Administration: When the debtor is unable to contest for the above,
he or she may express their inability to pay off the debts, due to
mitigating state of affairs i.e. an aged, disabled or individual
under extreme economic hardship.
Applying for Offer in
Compromise requires the deposition of certain forms. Taking advice
from professional tax consultants, like a CPA, tax attorney or agent
would greatly help you in achieving your aim of reducing or
eliminating your tax debts. The terms for agreement in an Offer in
Compromise would entail the following:
Agreement to pay the
offer amount settled between the parties, i.e. IRS and the debtor
Assurance to file
returns on time and also to pay taxes for the next five years within
the stipulated time.
Allow the Internal
Revenue Service to retain all tax refunds, payments and credits
applicable to tax debts prior to submission for the offer
Allow the IRS to
keep any tax refunds you were entitled to during the year of
approval of the Offer in compromise
If a debtor fails to
discharge the terms as stated above, the agreement contract would be
revoked and the original tax liability would be reinstated. A
qualified tax attorney would be able to prevent the invalidation of
your Offer
in Compromise. CT residents would get the best advice
in all tax matters from expert lawyers in their area.
If you are looking to
submit offer
in compromise CTarea,
IRS Medic offers the services of qualified and experienced tax
attorneys to resolve your tax issues.
