Offer in Compromise is an IRS program to settle your taxes for less. There are three different types of Offer in Compromise. This blog reviews Offer in Compromise Doubt as to Collectability.
Offer in Compromise Help
A Doubt as to Collectability Offer in Compromise Help is based on two parts.
Part 1 – Equity in Assets
Part 2 – Household income less necessary living expenses
If both parts are low, you may be eligible to file an Offer in Compromise. An offer in compromise is based on numbers. You can show the most you can afford is $2,500 to settle your IRS back taxes. The IRS will review the numbers supporting the $2,500 settlement. If the IRS agrees, then the IRS will accept $2,500 to settle your IRS back taxes. The amount you owe does not matter. You can owe $10,000 or $100,000. If the numbers support $2,500, then the IRS will accept $2,500.
The process on determining your numbers can be complicated. We review the basics on calculating equity in assets and household income. Click Here for Offer in Compromise Help. You will better understand how to calculate an IRS settlement amount.
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.