Do You Want to Apply for An Offer in Compromise? Here Is How to Go About It
Study shows that many people are unable to pay their taxes. Do you know where to start if you are unable to pay your taxes on time? 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. You should consider contacting the IRS as it is the one to help you. learn more below to know the steps you will need to follow to get an offer in compromise.
You should know the first step to take when you are applying for an offer in compromise. There are things that can disqualify you if you are not careful. There are these documents that you are required to fill out. There are two important forms that you are supposed to fill out with your details. You will get to indicate if you have other debts and also the things that you own. After filling out the form you will be required to pay an application fee that can also be used as a waiver. You should also be able to pay 20% of the debt that you owe. You should know that the payment is non-negotiable.
There are other things that are checked for you to be qualified for an offer in compromise. The qualifications are a must-have when you are applying. It is important that you learn more about qualifications before you even begin. Having a court-ordered tax debt and being behind on your taxes can make you disqualified. 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. You will also give out information about your car type and how you manage to pay the bills. When they realize that you cannot afford to give out the things that will cover you when you are in debt then you are disqualified. There are two ways in which you can choose to pay your debts. Either by paying in installments or paying much money within five months.
You will get many advantages when you choose to apply for an offer in compromise. You should know that you will be able to pay the debt in peace.