It is no secret that taxes can be confusing and stressful. However, when you fall behind and can’t afford to pay what you owe, that stress can turn into a nightmare. Fortunately, the IRS does offer some programs that can help alleviate some of the pressure, including the Offer in Compromise. In this blog post, we will dive deeper into what an Offer in Compromise is, how it can help you with your tax debt, and if it is the right step for you.
What is an Offer in Compromise?
An Offer in Compromise (OIC) is an agreement between the taxpayer and the IRS that settles a tax debt for less than what is owed. The program is designed to help taxpayers who genuinely cannot pay their full tax liability or if paying the full amount would cause an undue hardship. In other words, an Offer in Compromise allows you to negotiate with the IRS to pay a lesser amount that you can afford.
How Can it Help With Your Tax Debt?
As mentioned, an OIC helps you pay off your debt to the IRS in a way that fits your budget. Once your offer is accepted, you can set up a payment plan to pay off the agreed-upon amount in installments. Additionally, an OIC can help you avoid liens or wage garnishments, stop collection actions and prevent seizure of your property.
Is it the Right Step for You?
Deciding if an OIC is the right step for you can be challenging. There are several factors to consider, including eligibility, the types of tax debt, and the likelihood of the IRS accepting your offer. Before submitting an OIC, it is essential to speak to a reputable tax relief company like BFG Tax help, who can provide personalized guidance and help you determine if this option aligns with your financial situation.
How Does BFG Tax Help?
BFG Tax help has an experienced team of licensed tax professionals who are well-versed in resolving tax issues. We can help you evaluate your eligibility, explain the process, and ensure all the necessary paperwork is submitted correctly. Additionally, we can help you navigate the process after submission, preparing you to negotiate with the IRS so your offer has the best chance of acceptance.
The Offer in Compromise program can be an excellent option for those struggling with tax debt. It enables you to settle your debt with the IRS for less than what you owe, providing much-needed relief. However, the process is complex, and eligibility is not universal. It is essential to work with a reputable tax relief company like BFG Tax help to determine if an OIC is the right step for you. Our experienced team can help you every step of the way, from determining if eligibility is possible, to submitting your offer, and negotiating with the IRS for the best outcome. Contact us today to set up an appointment and take the first step to financial relief.