IRS tax settlements – The third offer of compromise, payment options you have to understand,

An offer of compromise (OIC), most popular type ofon low incomes.- Irs debt relief
IRS tax settlement allows to classify people, thanks to· Possibility OIC 2 – Offer quick payment – This
settle for a lesser amount than the tax liability on thepayment option, payment must be made before the
back of what they do. When the IRS offer inend periodic income, if the offer is made (unless the
compromise form of completing the amendment 656,taxpayer, the conditions for lowException). the entire
is a decision to be taken will be made when theamount should be paid to the IRS within 24 months
compensation or payments.from the date of application for tax clearance is
The IRS offers three payment options for this type ofreceived first.- Irs debt relief
transaction tax.· Possibility OIC 3 – deferred periodic payment
· OIC Option 1 – Lump Sum tender in cash – aoffer – This option allows the taxpayer to pay the
lump sumcash offer specifies that the accepted bidproceeds of the tender for the remaining amount
amount 5 or lower rates are paid. The amount mustbarred. The taxpayer is required to pay first if the
be paid within five months from the date the offer isoffer is made and will continue to make monthly
accepted. A 20% deposit is required to be submittedpayments to make during their taxconsidered.
with the offer, if the taxpayer qualify for the exemption