An Offer in Compromise is a program offered by the Internal Revenue Service (IRS) that allows taxpayers to settle their tax debt for less than the full amount owed. An Offer in Compromise can help you when you are facing financial hardship and are behind on your tax obligations. Here are some key advantages of an Offer in Compromise:
1. Debt Relief: An Offer in Compromise is a viable solution to taxpayers struggling with overwhelming tax debts. If you qualify, it allows you to negotiate with the IRS for a reduction of your overall tax liability and provides you relief from the burdens and stress of owing the Federal Government past due taxes.
2. Fresh Start: By obtaining an Offer in Compromise, taxpayers can start fresh and regain control of their finances. You can resolve your tax issues and move forward without the constant stress and worry of mounting tax debts.
3. Avoiding Bankruptcy: For individuals or businesses considering bankruptcy due to unmanageable tax debts, an Offer in Compromise provides an alternative to bankruptcy. Further, an Offer in Compromise can eliminate tax debts that a bankruptcy cannot discharge.
4. Flexible Payment Options: The IRS understands that each taxpayer’s financial situation is unique. When reviewing an Offer in Compromise, the IRS considers factors such as income, expenses, and assets. These considerations allow customized options including installment payment plans or lump-sum payments for payment of the compromised or settled amount, making it easier for taxpayers to fulfill their obligations.
5. Potential Savings: Obtaining a reduced tax liability through an Offer in Compromise can save taxpayers substantial amounts of money requiring payment of only a fraction of the total tax debt. In other words, you may only have to pay mere pennies on the dollar allowing you to use your hard-earned income to live, eat and be happy instead of paying it to the Federal Government.
6. Resolving Tax Disputes: In some cases, taxpayers may disagree with the IRS’s assessment of all or a portion of their tax liability. Through the Offer in Compromise process, they have an opportunity to resolve these disputes and reach a mutually acceptable agreement, thus avoiding costly and time-consuming legal battles.
In conclusion, an Offer in Compromise can be a lifeline if you are struggling with overwhelming tax debts. It provides debt relief, a fresh start, and flexible payment options while potentially saving you substantial sums of money. It offers taxpayers an opportunity to resolve their tax debts through an alternative to bankruptcy. Overall, it is a valuable tool that can help restore your financial stability and peace of mind.
If you would like more information, contact us today at (888)234-4357 for a FREE Consultation, and we can help you find your best solution.