| It doesn't matter how much you owe the IRS; they just | | | | the full amount. But even if they come back with the |
| need you to settle. As a rule, you need to determine if | | | | full figure, you are not at square one. This is a |
| the IRS is open to negotiation to settle on a | | | | negotiation, and there are many factors to every |
| compromise. The Offer in Compromise comes in in | | | | meeting that may help or hurt you when trying to |
| this case. Unfortunately, it is not that easy to solve | | | | resolve your IRS problem. |
| your IRS problems. | | | | One of the benefits of filing an Offer in Compromise |
| To be able to take advantage of an Offer in | | | | to the IRS is that, in numerous situations, they'll cease |
| Compromise, you should not own properties, not make | | | | their present actions against you. Until your Offer in |
| enough money to settle your debt, and not have any | | | | Compromise has either been dismissed or accepted, |
| investments. For the IRS to realize that it is more cost | | | | efforts like garnishing your wages will be generally |
| effective to accept the small figure you can provide | | | | frozen. |
| rather than going after what little you have, you should | | | | However, even if your Offer in Compromise is |
| be poor. | | | | dismissed, it may open the door to other payment |
| So when you file your Offer in Compromise to the | | | | methods. Instead of settling fully at one time, you may |
| IRS, how do you decide what you should offer? What | | | | be able to set up an installment payment plan to make |
| will help you succeed in lowering your back taxes? | | | | lesser payments and buy you time. Unfortunately, your |
| What number you must pay back is something you | | | | back taxes will still accrue interest. So even if you |
| cannot simply guess. Also, don't even consider just | | | | negotiate an installment plan, you'll want to settle the |
| choosing to settle a particular percentage of your total | | | | whole figure as soon as possible to avoid prolonging |
| debt amount. What the IRS will make you do is | | | | your IRS issue. |
| determine how much you likely are able to pay. There | | | | Keep in mind that the statute of limitations on your tax |
| are two IRS worksheets, Form 433-A and Form 656, | | | | debt extends by the amount of time it requires to |
| that can help you determine this figure. | | | | come to a decision from the moment you begin the |
| The process of negotiation can truly start once you've | | | | negotiating process by filing an Offer in Compromise. |
| filed your offer and the required paperwork. If the IRS | | | | So if the process requires a year for your case to be |
| agents do not like your first offer, they will send it back | | | | dismissed, the statute of limitations will be extended by |
| with a counter offer which could be slightly higher, or | | | | a year. |