Here Is How You Can Qualify to Get an Offer in Compromise
Many people have been known to fail in paying their taxes. Have you been wondering what you will do if you are not able to pay your taxes? One of the best things to do is to get more information before you take any steps. You should consider finding the info that will add benefits to you. One of the things that you should do is apply for the IRS. learn more below to know the steps you will need to follow to get an offer in compromise.
There is a process that you should follow when you are applying for an offer in compromise. You may apply and fail and you keep wondering what went wrong. There are papers that you are supposed to fill out first. For instance, you will need to fill out two forms. You will get to indicate if you have other debts and also the things that you own. You should also make the application payment that will also be used as the waiver if you get qualified. It is also required of you to pay an amount that is 20% of the debt that you have. This payment is a must to make.
Another thing you should know is that you must be qualified to apply for an IRS offer in compromise. You should have these qualifications before you even apply for an offer in compromise. Therefore, you should be sure that you will qualify before you fill out any forms. One thing that will disqualify you is being behind in your taxes, having a court-ordered tax debt and you are bankrupt. Also, provide the necessary information and the documents you are asked for. They could also deny your application if you do not pay the required fee.
The other that the IRS looks at when checking if you are qualified for an offer in compromise is your past, present, and future income. They will also check your car model and how much you pay your bills. You should know that you must have one thing that will be equal to your retained cash flow and you will get qualified. When you are accepted, you have two ways that you can pay your debt. Either by paying in installments or paying much money within five months.
There are many benefits you will get when you apply for an offer in compromise. One is that you will be at peace knowing that you will pay your debt at your own pace.