Offer in Compromise - Don"t Get Sucked Into the "Pennies on the Dollar" Myth
Do you owe the Internal Revenue Service (IRS) back taxes? Have you been looking for a way to get help without losing the shirt off of your back? If so, I am sure that you have heard or seen the slogan 'pay pennies on the dollar' for what you owe on back taxes.
While this might sound like an excellent alternative for paying less than the full amount owed in back taxes, it is important that you don't get taken for a ride.
Take it from a former IRS-Hitman, this type of payoff just does not exist! How to Qualify for an Offer in Compromise: First you need to understand that "Pennies on the Dollar" payoff is not really something offered by the IRS.
One program that the IRS offers is called an Offer in Compromise (OIC).
It is a legitimate tax relief program that allows many to resolve their outstanding back taxes, interest and penalties for a much lower amount.
The amount that you would pay back is determined on an individual basis.
This does not mean that if you owe $20,000 dollars in back taxes that you will only have to pay back $4,000 or $5,000 dollars of what you owe (the wishful Pennies on a Dollar offer).
The amount you pay back is determined by several things; basically, it is the total amount of cash from your property (cars, real estate and personal investments/income) if you sold everything today and what it costs for you to be able to live from day to day determines how much you can "compromise" to pay back to the IRS.
If the total amount of liquidated assets is equal to or more than the amount that you owe, you will not qualify for an Offer in Compromise.
Demonstration of hardship is another important factor! The taxpayer has to provide information to the IRS demonstrating that they are suffering an extreme hardship.
These extreme hardships come in many forms but mostly are of a medical nature (terminal illness or high medical bills) or major financial hardship (Bankruptcy or loss of a home in foreclosure).
Get Approval Today! In order for the IRS to approve an Offer in Compromise several things have to happen.
The taxpayer must have the ability to pay and borrow.
They must comply with all the Tax Laws and be current on all federal income tax withholdings as well as make all tax deposits on time and file all tax returns.
And they must have the ability to pay it off in a reasonable time frame (3 months to 24 months are the usual payback time).
Understand what you are getting into.
It is important for you to understand that this is a last resort choice for many people who owe back taxes.
It is an extremely difficult and times consuming process to endure.
And in the end you still may not be eligible for the Offer in Compromise.
You should consult a tax attorney to determine if this is the best course of action for you.
While this might sound like an excellent alternative for paying less than the full amount owed in back taxes, it is important that you don't get taken for a ride.
Take it from a former IRS-Hitman, this type of payoff just does not exist! How to Qualify for an Offer in Compromise: First you need to understand that "Pennies on the Dollar" payoff is not really something offered by the IRS.
One program that the IRS offers is called an Offer in Compromise (OIC).
It is a legitimate tax relief program that allows many to resolve their outstanding back taxes, interest and penalties for a much lower amount.
The amount that you would pay back is determined on an individual basis.
This does not mean that if you owe $20,000 dollars in back taxes that you will only have to pay back $4,000 or $5,000 dollars of what you owe (the wishful Pennies on a Dollar offer).
The amount you pay back is determined by several things; basically, it is the total amount of cash from your property (cars, real estate and personal investments/income) if you sold everything today and what it costs for you to be able to live from day to day determines how much you can "compromise" to pay back to the IRS.
If the total amount of liquidated assets is equal to or more than the amount that you owe, you will not qualify for an Offer in Compromise.
Demonstration of hardship is another important factor! The taxpayer has to provide information to the IRS demonstrating that they are suffering an extreme hardship.
These extreme hardships come in many forms but mostly are of a medical nature (terminal illness or high medical bills) or major financial hardship (Bankruptcy or loss of a home in foreclosure).
Get Approval Today! In order for the IRS to approve an Offer in Compromise several things have to happen.
The taxpayer must have the ability to pay and borrow.
They must comply with all the Tax Laws and be current on all federal income tax withholdings as well as make all tax deposits on time and file all tax returns.
And they must have the ability to pay it off in a reasonable time frame (3 months to 24 months are the usual payback time).
Understand what you are getting into.
It is important for you to understand that this is a last resort choice for many people who owe back taxes.
It is an extremely difficult and times consuming process to endure.
And in the end you still may not be eligible for the Offer in Compromise.
You should consult a tax attorney to determine if this is the best course of action for you.