Do You Want to Apply for An Offer in Compromise? Here Is How to Go About It

You may have heard that people are having trouble paying their taxes on time. You may be thinking of what you can do when you cannot pay your taxes. 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.

The first thing you should know is that it takes a process to apply for an IRS offer in compromise. You may apply and fail and you keep wondering what went wrong. There are papers that you are supposed to fill out first. There are two important forms that you are supposed to fill out with your details. You will get to indicate if you have other debts and also the things that you own. After filling out the form you will be required to pay an application fee that can also be used as a waiver. There is also an amount you will be required to pay to cover 20% of your debt. You should know that this payment is compulsory.

There are other things that are checked for you to be qualified for an offer in compromise. You should have these qualifications before you even apply for an offer in compromise. You are supposed to check it out everything before you start the process. Having a court-ordered tax debt and being behind on your taxes can make you disqualified. Also, provide the necessary information and the documents you are asked for. The payments will also make you disqualified. You should know that you will not be accepted if you do not pay.

If you want to be accepted when you apply for an offer in compromise, then you should consider giving out info. about your past present, and future income. How you afford to pay your bills will also matter and the type of car you drive. When they realize that you cannot afford to give out the things that will cover you when you are in debt then you are 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.

You will get many advantages when you choose to apply for an offer in compromise. You should know that there will be time to pay the debt at the pace that you need.

Supporting reference: their website