7 Frequently Asked Questions About IRS Offers in Compromise

1. What is an offer in compromise?

An OIC is an IRS tax resolution program that a taxpayer less satisfied with their IRS back tax liability through the payment with as they can thank for it. The amount to be paid to the needs of a taxpayer, depending on the unique financial circumstances of the taxpayer and his original liability amount. However, it is due in general much less than the tax due. The IRS will only accept a taxpayer's OIC when itequal to or greater than the reasonable collection potential, which is the IRS 's measure the ability of taxpayers to pay their debts. Most taxpayers will not benefit from this program.

2. What fees must I pay if I submit my OIC?

You must pay a $ 150.00 filing fee, and provide a check or money order for 20% of the flat marsh.

3. What happens if I am to submit my offer, without the 20% payment?

If your site without the 20%Payment, the IRS will reject your offer as not processable, and your OIC and $ 150.00 filing fee back to you back.

4. Is there any way to my job without having to submit the application fee or 20% deposit?

Yes, the IRS, you may submit an indicative offer of $ 150.00 filing fee or 20% of the payment, if you meet the IRS 's low-income taxpayers' needs. For more information on the question of who read as low-income taxpayers, on this pagethe IRS website.

5. If an offer in compromise to Remove a wage garnishment or a bank collected?

After an OIC is accepted not automatically remove a wage garnishment or bank levy. However, an OIC took your correct tax liability with the IRS so that you release your application for garnishment or levy.

6. How long does it take for the IRS to take in order to decide on an offer in compromise?

It is the IRS several months to review yourOIC. In addition, if the IRS carries out a preliminary examination, they may have questions or clarification from you regarding some of the ideas that have been made in the OIC. As such, there is really no way to tell how long it takes for the IRS to take in order to respond your OIC.

7. What if my offer is rejected in the compromise?

If your OIC is rejected, you still have other options for your tax liability. You could claim for placement in Currently NotCollectible status, would essentially end all IRS collection activity on your account, unless your financial situation changes. Or do you want to qualify for an installment agreement, which would you pay for your tax liability through manageable monthly payments.