Offers in Compromise
Are you unable to pay your tax debt?
The burden of tax debt can be crushing and many who are unable to pay the
full amount may feel helpless. Fortunately, the IRS offers qualifying
individuals a way to settle their debt for less than what is owed. Called
an offer in compromise, this possibility requires the submission of various
forms and it is important to note that not everyone will qualify. If you
are hoping to pursue an offer in compromise, get a seasoned Santa Clarita
tax resolution attorney on your side. Our firm can help you achieve the
most favorable resolution to your tax concerns.
Fill out a free case evaluation form to learn more!
What is the process of submitting an offer in compromise?
When you submit your offer in compromise, the IRS takes a number of different
factors into account, including your ability to pay, your income, and
your current expenses. Even before applying, you must be current with
all filing and payment requirements. Your completed offer package should
include Form 433-A, Form 656, and the application fee.
Keep in mind that while your offer is being evaluated:
- Your non-refundable payments and fees will be applied to the tax liability
- A Notice of Federal Tax Lien may be filed
- All other collection activities are paused
- The legal assessment and collection period is extended
- Your offer is automatically accepted if the IRS does not make a decision
within two years
You can choose one of two payment options – lump sum cash or periodic
payment. The first means that you pay 20 percent of the total offer amount
with your application and pay the remaining balance in five or fewer payments.
With the second, you submit your initial payment with your application
and then pay the rest in monthly installments while your offer is being
considered and possibly accepted.
Take Control with a Santa Clarita Tax Resolution Lawyer
The longer you wait, the more overwhelming your tax debt can become. RJB
Law Offices wants to help you get back on your feet and eliminate the
stress caused by tax debt. Your finances deserve a high level of attention
and care, both of which you can count on from our team of talented professionals.
Before you apply for an offer in compromise,
reach out to our firm! We look forward to making the positive outcome you desire a reality.