Pennies on the Dollar? Making a Deal with the IRS? You've Heard the Jingles on TV and Radio, BUT what really is important to qualifying for an Offer in Compromise with the IRS?
In our 30 year history, we've seen a lot of approaches, deceptive and otherwise, towards "selling" an Offer in Compromise, but what gets truly overlooked are the following key questions:
1. Can you pay your taxes off before they expire? Back tax debts expire 10 years after they've been assessed. The date of your most recent tax debt is the most important date to consider for your Offer. For example, if you just filed 2018 and owe $50,000.00 that debt should expire in May 2029 roughly or in 120 months. IF you divide that $50,000 by 120 months that equals $417 a month. If you have LESS than $417 in monthly disposable income after considering the IRS standards/limits, then you pass the first test for qualifying.
2. Do you have the assets to pay what you owe? If your net worth exceeds what you owe then USUALLY that disqualifies from you from an OIC. However, IRAs and 401ks can be valued at 60%. Houses at 80%. And even if you have the home equity to pay off the IRS, you still MIGHT qualify if you can show you can't get access to the equity by getting two loan denials.
3. Are you current on your recent taxes? Ready to be current on taxes for the next 5 years? Getting an Offer in Compromise with the IRS means promising to pay your current and future taxes. If you are self-employed that can be tricky. Ready to get current on taxes for the year that you are in or prepare to roll in your unpaid recent taxes into a future Offer in Compromise?
With 30 year plus years of continuous operation, WATAX are experts at resolving tax problems. We do several Offer in Compromises every week, but we also have other solutions to IRS and State tax problems that might better suit your situation. Call us at 1-888-282-4697 or email us a description of your tax situation and we'll contact you!
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